Netflix to Buy Warner Bros in Historic $72 Billion Takeover, This Is How The Streaming Giant Won The Bid

Netflix has reached an agreement to purchase Warner Bros Discovery’s TV and film studios, along with its streaming wing, for $72 billion, a landmark acquisition that would place one of Hollywood’s oldest and most valuable entertainment empires under the control of the streaming giant that has already reshaped the global media landscape. 

The deal, revealed on Friday, which comes after an intense bidding battle spanning several weeks, during which Netflix pulled ahead with an offer of nearly $28 per share, surpassing Paramount-Skydance’s bid of about $24 for the entire Warner Bros Discovery portfolio, including cable networks planned to be spun off. 

Is Netflix Now Hollywood’s New Powerhouse?

Fiona Cincotta, Senior Market Analyst at City Index, noted that the initial market response has been fairly subdued, indicating that much of the development may have already been factored into expectations. However, she emphasized that in the long run, the acquisition is monumental for Netflix, effectively positioning it as a major force in Hollywood, marking a significant strategic shift for the company. 

Could Government Roadblocks Stop the Netflix–WBD Sale?

Wedbush analysts warned that the deal could have major repercussions for the theatrical market if Netflix takes control of WBD. They noted that film release schedules have already been set through 2029, meaning any buyer would be required to release those titles in cinemas for at least the next four years, something Netflix has publicly stated it would comply with. 

He said, “Significant concerns have been voiced over the potential impact on the theatrical market should Netflix take over WBD. First, we note that the theatrical release slate has already been negotiated through 2029, so any buyer would have to honor those contracts by showing the slated WBD films in theaters for at least the next four years. Netflix has stated that it would honor those theatrical obligations.”

“However, significant concerns remain within the industry and among government officials. Should the exclusive negotiations with Netflix lead to a proposed sale, the regulatory process would be lengthy and difficult, and may ultimately block the sale without clear assurances from the studio side.” 

Is Netflix Ready for a Worldwide Regulatory Battle?

Kim Forrest, CIO at Bokeh Capital Partners in Pittsburgh, noted that it is striking to see Netflix emerge as the winning bidder, especially with so much emphasis placed on the streaming segment, the company’s core strength. She added that the real challenge now lies in securing regulatory approval, not only in the U.S. but globally. While this could be a significant hurdle, she suggested that both companies appear confident they can navigate it successfully.