Netflix and Paramount have been fighting over Warner Bros for the last 6 months. Warner Bros has been sitting on debt exceeding 40 billion dollars as stock prices dropped from $25 per share to a low of $13 per share. Although Warner Bros is in debt, it holds one of the largest libraries of legally protected content, also referred to as IP in Hollywood, including DC Universe, Cartoon Network, and Game of Thrones. Netflix and Paramount both rushed to buy Warner Bros to get a hold of these IPs. When LJHS sophomore Maksim Koutsenok was asked what he thought Paramount would do with these new IPs, he said, “I think they’re producing too much and they aren’t high-quality owners, so I think these IPs will be butchered.”

Netflix had offered to buy Warner Bros Discovery (WBD) for $83 billion, but the offer didn’t last long as shareholders became skeptical and share prices dropped 30% after the announcement. After receiving backlash, Netflix decided to end the bidding battle with Paramount and withdraw from the WBD acquisition. This news increased Netflix’s stock price by 14%. Netflix’s withdrawal gave Paramount the opportunity to buy WBD for $31 per outstanding share, at an implied price of $110 billion. When asked whether these companies are getting too big, theatre director Ms. Wiesz said, “I think we’ll eventually be whittled down to 3 streaming services and they will jack up the prices.” But only time will tell if Paramount will use its resources to produce great shows and movies.