Most filmmakers living on the U.S. West Coast were likely still asleep when a piece of news was released on December 5, 2025 - news that could profoundly reshape Hollywood. At 4:00 a.m. local time, Netflix announced the acquisition of large parts of Warner Bros. Discovery. With the transaction worth nearly USD 83 billion, the streaming provider is reaching for some of the biggest and most successful studios in the U.S. film industry. Blockbusters such as Harry Potter or Dune are part of the Warner libraries, as are hit series like The Big Bang Theory or Game of Thrones. While Netflix also wants to buy the streaming division HBO Max, the TV networks, including CNN, are to be spun off before the deal is completed. “Together we can give audiences more of what they love and help define the next century of storytelling,” enthused Netflix Co-CEO Ted Sarandos.
At that moment, he could not have known that Paramount Skydance would launch a counterattack exactly three days after Netflix’s move. On December 8, the media group submitted a hostile USD 108 billion takeover bid for Warner Bros. Discovery as a whole. Paramount Skydance is offering USD 30 per share in cash. Netflix wanted to pay “only” USD 27.75, including USD 4.50 in its own stock. In addition to the film studios of the same name, the streaming service Paramount+ and the TV network CBS are part of Paramount Skydance. The group is led by David Ellison. The 42-year-old comes from a prominent and wealthy family. His father, Larry Ellison, co-founded Oracle and is the second-richest man in the world. What may also help Netflix’s rival is a direct line to the White House. Jared Kushner, the son-in-law of U.S. President Donald Trump, is involved in the Paramount offer. His investment firm, Affinity Partners, is expected to participate as an external partner in financing the takeover. Trump told reporters that he had not discussed the deal with Kushner. At the same time, he emphasized that neither Netflix nor Paramount are his friends. Previously, the president had already announced that he would intervene in the decision on whether a Netflix takeover of Warner would be approved.
Antitrust concerns are likely one reason why Netflix’s share price has reacted negatively to recent news. On Friday, December 5, the large-cap stock fell below the USD 100 mark for the first time since April. After Paramount’s counterbid, selling pressure continued to increase - Netflix lost 3.4% on Monday. Investors may fear that Ted Sarandos will not back down after the escalation of the months-long bidding war over Warner Bros. Discovery. The company’s more than 300 million subscribers have been ringing the cash register for years (see chart). Nevertheless, Netflix is already planning to take on USD 50 billion in debt to finance its current offer. In any case, should the streaming giant ultimately prevail, the Warner acquisition would represent a kind of cultural shift. Until now, the company has primarily relied on original productions. A classic example is House of Cards. The political series, first released in 2013, is considered the cornerstone of Netflix’s rise. “Over the years, we’ve made a name for ourselves as a builder rather than a buyer,” the Co-CEO admitted during a conference call about the Warner offer.
It is currently completely unclear which strategic direction the company will take. All the more interesting, then, is the new soft-callable Barrier Reverse Convertible on Netflix. Investors can count on regular coupon payments with this issuance. The CHF-denominated BRC offers an annual payout of 8%. The USD variant yields 11.6% p.a. For these return opportunities, there is partial protection in the form of a barrier set at 59% of the initial level of the underlying asset. What is certain is that the news flow surrounding the takeover of Warner Bros. Discovery will not dry up anytime soon. As such, Netflix could remain of interest to traders. It is therefore convenient that the Nasdaq-listed stock holds a firm place in Leonteq’s leveraged product range. In total, the issuer trades nearly 70 mini-futures, warrants, and knock-out warrants on Netflix shares. They allow investors to take positions in both directions - long and short.
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