Here's a classic Hollywood story: a studio throws a huge victory party just as the moving trucks are pulling up to take over the building. That's roughly the scene at Warner Bros. Discovery Warner Bros. Discovery (WBD) right now. The company just bagged 11 Oscars at the 98th Academy Awards on Sunday night. But the celebration is happening in the shadow of a nearly $110 billion sale to Paramount Skydance Paramount Skydance (PSKY).

The studio's winning streak was led by 'One Battle After Another', a film by Paul Thomas Anderson, which won six awards, including best picture, best director, and best supporting actor. 'Sinners', another Warner Bros. production set in the Jim Crow-era South, won four Oscars, including best actor for Michael B. Jordan.

During his acceptance speech, Jordan thanked the studio for its commitment to original filmmaking. "I want to thank Warner Bros for betting on original ideas and artistry," he stated.

However, the celebrations were somewhat overshadowed by the impending sale of the studio. "It will be impossible to ignore that we will be celebrating the achievements of filmmaking with one less studio on the horizon," Terry Press, a veteran Hollywood marketing executive, told Reuters.

Other studios, including Netflix Netflix Inc. (NFLX), also had a successful night, with Netflix winning seven Oscars, three of which were for Guillermo del Toro's adaptation of Mary Shelley's Frankenstein. Netflix also won the Academy Awards for Best Animated Feature and Best Song for K-pop Demon Hunters.

Studio Shake-Up As Netflix Steps Back

The success of Warner Bros. Discovery at the Oscars comes amidst a significant shift in the studio's ownership. Netflix declined to match the revised bid from Paramount Skydance, stating that the deal was no longer financially attractive.

Following Netflix's decision to walk away from the proposed merger, JPMorgan analyst Doug Anmuth upgraded Netflix's stock from Neutral to Overweight. Anmuth stated that it was "back to business" for Netflix, suggesting a positive outlook for the streaming giant despite the missed acquisition opportunity.

Meanwhile, David Ellison, chair and CEO of Paramount, said in an open letter to reporters last month that the combined company will produce at least 30 theatrical films annually and maintain a competitive marketplace, stressing that audiences benefit from greater choice rather than industry consolidation.

On a year-to-date basis, Warner Bros declined 4.81%, while Paramount plunged 26.25%. On the other hand, Netflix gained 4.75%.