Netflix reassures subscribers with a letter after $82.7 billion bid to acquire Warner Bros. Discovery

Netflix has assured its global user base that their accounts and viewing experience will remain unchanged for now, following its announcement of an $82.7 billion bid to acquire Warner Bros. Discovery (WBD). The company issued a letter to all 301.6 million subscribers worldwide, titled “Welcoming Warner Bros. to Netflix,” amid rising speculation over competing takeover interest from Paramount Skydance Corp.

In the email, Netflix confirmed plans to purchase Warner Bros.’ film and television studios, HBO and HBO Max, and other WBD assets. The company positioned the deal as a major expansion of its entertainment portfolio, bringing franchises such as Harry Potter, Friends, Game of Thrones, and DC titles under the same umbrella as Netflix originals like Stranger Things, Squid Game and Wednesday.

Netflix emphasised that the acquisition will not immediately affect its services. “Nothing is changing today,” the message stated, adding that both streaming platforms will continue operating independently until regulatory and shareholder approvals are secured. The company also reassured subscribers that their existing plans remain intact and content libraries will remain separate for the time being.

An updated FAQ on Netflix’s Help Center echoed the same stance, noting that Warner Bros. content will not be integrated into Netflix instantly and that pricing or plan structures are not being altered as part of the announcement.

The full letter also addressed potential viewer concerns, reiterating Netflix’s commitment to expanding its slate of series, films, games and live programming. It encouraged subscribers to reach out to customer support for additional queries.

Competing bids and breakup fees

Netflix’s acquisition plans come at a time when Warner Bros. Discovery is facing competing interest from Paramount Skydance Corp. Paramount has reportedly made a significantly higher proposal, valued at $108.4 billion, including debt, through an all-cash offer of $30 per share. Netflix’s bid, by comparison, is worth $27.75 per share in cash and stock.

While Paramount is seeking to purchase all of Warner Bros., Netflix is focused on acquiring the Hollywood studios, HBO, and the company’s streaming operations.

Under the current agreement, Warner Bros. would owe Netflix $2.8 billion if it backs out of the deal, a cost that would typically be borne by any new acquirer. Netflix, meanwhile, has agreed to pay $5.8 billion if the deal collapses due to regulatory hurdles or internal withdrawal.

What comes next

The acquisition process is expected to take months as both sides prepare for regulatory scrutiny in multiple markets. Netflix has told subscribers it will provide further updates as the deal progresses.