Netflix Nets Warner Bros Discovery in $72B Streaming Surge
Streaming giant Netflix is set to acquire the TV, film studio, and streaming divisions of Warner Bros Discovery, one of the world’s largest entertainment companies based in Hollywood, USA. The $72 billion deal was officially announced on Friday, 5 December, signaling a major shift in the digital media landscape.
After weeks of intense negotiations, Netflix outbid Paramount Skylance, which had offered $24 per share for the digital assets. Netflix’s bid of nearly $28 per share gave it the competitive edge. The acquisition gives Netflix control over globally popular franchises such as Game of Thrones, DC Comics, and Harry Potter. While Netflix had reigned without major acquisitions until now, this move strengthens its position against rivals like Walt Disney and Paramount.
Netflix Co-CEO Ted Sarandos stated, “Together, we will be able to provide audiences with even more of their favorite content and help shape the way stories are told in the next century.”
However, analysts warn that the deal may face strict antitrust scrutiny in Europe and the United States, as it involves the ownership of HBO Max, one of Netflix’s key competitors with around 130 million subscribers. To ease concerns about market monopolization, Netflix argued that integrating HBO Max with its service will allow customers access to bundled offers at lower costs. Netflix has also pledged to continue theatrical releases of Warner Bros films.
The acquisition will be completed through a mix of cash and stock. Warner Bros Discovery shareholders will receive $23.25 in cash and $4.50 worth of Netflix shares per share, totaling $27.75 per share. Including debt, Warner’s total valuation stands at $82.7 billion. Following the listing of Warner Bros’ Global Network Unit as a separate public company, the acquisition is expected to be finalized in Q3 of 2026.
Meanwhile, Paramount has claimed that Netflix received unfair advantages during the sale process. On Friday, in pre-market trading, Netflix shares fell nearly 3 percent, while Paramount shares dropped 2.2 percent.
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