The acquisition of Warner Bros. Discovery by streaming giant Netflix has been the biggest piece of ongoing entertainment news of 2026 so far, and there is an unexpected new twist in the story, which has caused that business to collapse.
After controversial talk of limited theatrical release and concerns that Netflix may be building a streaming monopoly, the DVD-rental-service-turned-streaming-giant has pulled out of a deal after being rejected by Paramount Skydance for $111 billion (about $82 billion, or AU$115 billion).
The offer was officially considered bigger than Netflix’s offer, which was sitting at around $82 billion. Since Paramount raised its offer, Netflix has reportedly pulled out of the deal, saying it was “no longer financially attractive” for the new price.
You can find the full statement from Netflix here, but without focusing on the problem of multi-billion dollar deals, it seems that Paramount’s willingness to acquire the studio – which owns a number of intellectual properties – includes a high profile. Harry Potter, Game Of Thrones, the DC Universe, Lord of the Rings again Looney Toons – pushed it to make a cash offer that Netflix has no desire to match or exceed.
The real question is this: what will happen to the broadcasting services connected to these multimedia conglomerates?
No prizes for guessing which service Netflix owns, but Paramount and Warner Bros. have different fingers in most streaming pies.
Warner Bros owns HBO Max (soon to be launched in the UK) and Discovery+, while Paramount has stakes in Paramount+ and free-to-air platform Pluto TV, as well as UK broadcaster Channel 5 and its on-demand streaming partner, 5.
Consolidation is completely out of the question here; just look out for Hulu’s merger with Disney+ here in the UK, so we could see Paramount+ and HBO Max become one entity in the future, although this is yet to be confirmed.
Claims suggest that HBO Max could join Paramount+ down the line, with Bloomberg (via a broadcast-oriented news source Streamable) reporting that Paramount CEO David Ellison plans to spin off HBO Max and fold it into Paramount+ if the deal goes through. That was reported in October 2025, and since then, the deal has clearly been done.
This doesn’t necessarily mean that HBO Max’s days are numbered – we’ll have to wait to hear the full circumstances of Warner Bros’ acquisition before we make a call on the future of HBO Max – but it’s also not out of the question that the services could be folded into one.
Netflix’s original plans, described in an email titled “Welcoming Warner Bros to Netflix” (not good), seem to have been forgotten.
Interestingly, it stated in that first email that “both streaming services will continue to operate separately” under Netflix’s ownership of Warner Bros. Apparently, we don’t have to worry about that anymore.
MORE:
HBO Max is coming to the UK and Ireland next month
Check out our selection of best streaming devices
As well as- the best streaming services for movies and TV shows
