Netflix has finalized a $72 billion acquisition of Warner Bros Discovery’s TV and film divisions, handing the streaming giant control of one of Hollywood’s oldest and most prestigious assets, further reshaping the media landscape.
The announcement on Friday followed an intense bidding war, with Netflix offering nearly $28 per share, surpassing Paramount Skydance’s $24 bid for the entire Warner Bros Discovery portfolio, including its cable TV assets.
On Thursday, Warner Bros Discovery’s shares closed at $24.5, valuing the company at $61 billion in the market.
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Acquiring renowned franchises like “Game of Thrones,” “DC Comics,” and “Harry Potter” will strengthen Netflix’s influence in Hollywood, boosting its strategy to combat rivals like Walt Disney and Paramount without relying on significant acquisitions or a vast library.
Experts suggest Netflix aims to secure long-term rights to popular shows and movies, reducing dependency on external studios, as it ventures into gaming and explores new growth opportunities post password-sharing crackdown success.
However, the deal is expected to face rigorous antitrust scrutiny in both Europe and the US since it grants Netflix, the largest streaming service, ownership of a major competitor with nearly 130 million subscribers, including HBO Max.
Paramount, led by David Ellison, initiated the bidding with unsolicited offers and questioned the sale’s fairness in a letter accusing the process of favoring Netflix.
Netflix, in deal negotiations, argued that merging its service with HBO Max could lower consumer costs through bundled offerings, as reported by Reuters on Tuesday.
Additionally, Netflix has assured Warner Bros Discovery it will continue to release films in theaters, addressing concerns that the acquisition might eliminate a major source of theatrical content, according to media reports.
