Author: Chris Snelgrove updated
Yesterday, Netflix confirmed something that once seemed unthinkable: The streaming giant has reached a “definitive agreement” to acquire Warner Bros. (more specifically, the film and TV studio) for a staggering $83 billion. There’s still a long way to go before any such deal is finalized, but audiences around the world are wondering how this will impact major Warner Bros. franchises, from Harry Potter to the DCCU. Those fans probably needn’t worry, though: According to a compelling conspiracy theory, Netflix made the huge bid just to prevent Paramount from acquiring Warner Bros., and may not end up buying the movie studio.
If you didn’t know already, Paramount is Netflix’s main competitor in these talks, with the studio looking to acquire Warner Bros. and its library of exciting content. Paramount had previously offered $60 billion but was rejected; it has since reportedly accused Warner Bros. of favoring Netflix in the sale and may take legal action. Interestingly, the federal government may even intervene, especially since Variety reports that a group of high-profile directors have reached out to Congress asking them to take a closer look at Netflix for possible violations of existing antitrust laws.
Conspiracy is born
But why do more rivals think Netflix is trying to acquire Warner Bros. just to take down Paramount, the developer of rival streaming service Paramount+? The main reason is that whoever successfully buys WB will have access to a rich library of content featuring some of the world’s most famous franchises, including Harry Potter, Lord of the Rings, Game of Thrones and the DCU. If Paramount wins, they’ll have a library that could threaten Netflix, but adding WB content to their own vast library would solidify their position as the largest and most popular streamer.
Additionally, Paramount had just completed a high-profile merger with Skydance, and they said they would stop trying to make artsy, Oscar-worthy movies and instead choose films that appeal to the most people. Acquiring Warner Bros. now will help Paramount achieve its short-term goals of providing it with numerous high-profile IPs that can be developed into sequels, prequels, reboots and spin-offs. It would also fulfill Paramount’s long-term goal of becoming more competitive in theaters and streaming.
Defeat Paramount once and for all
Netflix’s acquisition of Warner Bros. would prevent Paramount from achieving those goals, while also allowing the original streamer to develop new shows and movies and avoid losing subscribers due to an influx of new content. So why do some online conspiracy theorists think Netflix may not ultimately care if they get to buy The WB? Aside from the fact that the federal government will likely halt the sale (preventing Netflix from being a marginal monopoly), the naked fact is that Netflix will win, even if they just delay Paramount by a few years for the time it takes to resolve a high-profile court case
Simply put, Netflix is already the most powerful streaming service in the world, growing from 21.5 million subscribers in 2011 to 300 million subscribers in 2024. By comparison, Paramount+ will be lucky to reach 80 million subscribers in 2025. At this rate, Paramount will never catch up to their competition, and the only thing that can help them get close is getting a license from Warner Bros. A vast library of content and a collection of best-in-class intellectual property.
Will Paramount implode on its own?
As of this writing, Netflix has successfully prevented this from happening, and even if (more like when) they end up going to court over the matter, Paramount will be without the content they desperately need for the next few years. When all this is ironed out, Netflix’s lead will increase significantly, and even Paramount’s acquisition of Warner Bros. won’t help them get there. Additionally, there’s a non-zero chance that Paramount will implode on its own in the next few years due to controversial decisions like jettisoning established Star Trek lore in favor of yet another reboot.
Only time will tell whether Netflix can successfully close the deal or if everything from bad negotiations to federal intervention will prevent it from happening. Regardless of how things pan out, however, the veteran streamer has successfully screwed over Paramount, the studio that likely outbid Paramount for Warner Bros. Paramount could acquire Netflix at any time to ensure its dominance as a streaming service, even though it could destroy the entire movie theater industry as we know it.
