Netflix to buy Warner Bros in $72B deal after brutal bidding war
Netflix has announced its plans to acquire Warner Bros. Discovery’s studio and streaming business in a massive $72 billion deal, outbidding Paramount and Comcast. The merger will occur after WBD separates its Discovery Global business into a new publicly-traded company, expected to be completed in the third quarter of 2026. The total value of the deal, including debt, amounts to $82.7 billion.
Netflix’s proposal to take over Warner Bros. film and TV studios, HBO, and HBO Max is valued at $27.75 per share. Ted Sarandos, co-chief executive of Netflix, expressed excitement about the merger, stating, “Together, we can give audiences more of what they love and help define the next century of storytelling.”
Paramount and Comcast also submitted offers for WBD, with Paramount raising concerns about regulatory challenges if Netflix’s bid were to be accepted. Despite the speculation favoring a deal with Netflix, Paramount’s Ellison family at Paramount Skydance plans to appeal directly to WBD shareholders, arguing that regulatory issues could halt the merger.
The potential WBD-Netflix merger has sparked antitrust concerns, with senior White House officials discussing the implications of the deal. However, Netflix believes that the merger would offer more choices and value for consumers by combining popular titles from both companies.
A group of anonymous film producers has expressed concerns about a Netflix deal, stating that Netflix prioritizes streaming over traditional movie theaters. Despite this, Netflix has promised to continue theatrical movie releases for WBD as part of the deal.
The article mentions that Warner Bros. had requested improved offers from bidders, leading to the eventual acceptance of Netflix’s bid. This deal closely follows the $8.4 billion merger between Skydance Media and Paramount Global, which faced scrutiny over antitrust and political concerns before being approved by the FCC.
Overall, the acquisition of Warner Bros. Discovery by Netflix marks a significant development in the streaming industry, with potential implications for competition and consumer choice.
