A Netflix emerged victorious in the dispute for acquisition and Warner Bros. and from HBO.
On Friday morning (5), Netflix announced that it had reached an agreement with Warner Bros. Discovery to buy the legendary film and television studio, as well as assets such as streaming service HBO Max, for $72 billion.
The announcement shook Hollywood and upset expectations about Warner Bros.’s next steps. Discovery, which is also the parent company of CNN.
Warner Bros. Discovery is proceeding with its plans to split into two publicly traded companies in 2026. Once the split is effective, Netflix intends to acquire Warner’s share. The other part, Discovery Global, will house CNN and other cable channels.
A combination of Netflix, Warner Bros. and HBO will require rigorous regulatory review in the US and other countries.
The merger would create a streaming entertainment giant and end one of the media industry’s biggest rivalries of the last decade.
A recent report from Bank of America analysts stated the following: “If Netflix acquires Warner Bros., the streaming wars would effectively be over. Netflix would become Hollywood’s undisputed global powerhouse, surpassing even its already lofty position.”
For several weeks, Paramount was considered the favorite in the WBD auction. Paramount executives, who want to buy all of WBD – including its cable assets – have expressed confidence in their proposed merger and their mutually beneficial relationship with President Trump.
But Netflix surprised many with the boldness of its proposals. The streaming giant submitted two offers earlier this week that put it ahead of Paramount’s proposals, according to sources familiar with the matter.
Additionally, Netflix agreed to the same onerous termination fine proposed by Paramount, according to one of the sources. This means that the potential buyer will have to pay billions of dollars to WBD if the deal does not go through.
The biggest unknown factor is regulatory approval. The Trump administration will scrutinize any transaction between Netflix and WBD, and some analysts predict a subsequent political and legal battle.
Some American politicians have already expressed concern about possible consolidation.
“Learning about Netflix’s ambition to buy its real competitive threat — WBD’s streaming business — should set off alarm bells for antitrust authorities around the world,” Senator Mike Lee wrote in X.
“This potential transaction, if it comes to fruition, would raise serious competition concerns — perhaps more than any other transaction I have seen in about a decade.”
Paramount and Comcast, the other media giant known to have submitted bids for WBD, may continue to negotiate a deal. In other words, this saga is far from over.
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