Netflix won the battle for Warner Bros. and HBO, UNN reports with reference to CNN.
Details
On Friday, Netflix announced an agreement with Warner Bros. Discovery to acquire the legendary television and film studio, as well as assets such as the HBO Max streaming service, for $72 billion.
Today, Netflix, Inc. and Warner Bros. Discovery, Inc. announced the signing of a definitive agreement under which Netflix will acquire Warner Bros., including its film and television studios HBO Max and HBO. The deal, paid for in cash and stock, is valued at $27.75 per WBD share, with a total enterprise value of approximately $82.7 billion (equity value - $72 billion).
"The transaction is expected to close after the previously announced spin-off of WBD's Global Networks unit, Discovery Global, into a new public company, which is expected to be completed in the third quarter of 2026," the statement said.
The announcement shocked Hollywood, the publication writes. Warner Bros. Discovery continues to implement its plans to split into two public companies in 2026. After the split takes effect, Netflix intends to acquire half of Warner. The other half, Discovery Global, will include CNN and other cable channels, the publication notes.
The merger of Netflix, Warner Bros. and HBO will require careful scrutiny by US and other regulatory bodies.
This merger will create a streaming giant and end one of the biggest rivalries in the media industry of the last decade. A recent Bank of America analytical report states: "If Netflix acquires Warner Bros., the streaming wars are effectively over. Netflix will become the undisputed global leader in Hollywood, surpassing even its current high position."
For several weeks, Paramount was considered the favorite in the auction for WBD. Paramount management, which wanted to buy all of WBD, including its cable assets, exuded confidence in its merger proposal and mutually beneficial relationship with US President Donald Trump, the publication writes.
But Netflix surprised many with the boldness of its proposals. According to sources familiar with the situation, earlier this week the streaming giant submitted two proposals that allowed it to bypass Paramount.
Moreover, Netflix agreed to the same high termination fee as Paramount, one source said. This means that a potential buyer will pay WBD billions of dollars if the deal is not completed.
The most important "X" factor is regulatory approval. The Trump administration will consider any deal between Netflix and WBD, and some analysts expect a political and legal battle, the publication writes.
Some American politicians have already expressed concern about potential consolidation.
"News of Netflix's ambition to acquire its real competitive threat - WBD's streaming business - should alarm antitrust authorities around the world," US Senator Mike Lee wrote on X. "This potential deal, if it happens, will raise serious questions about competition - perhaps more than any other deal I've seen in about a decade."
Paramount and Comcast, another media giant known for making bids to acquire WBD, may continue negotiations for a deal. In other words, this story is far from over, the publication notes.
Netflix considers acquiring Warner Bros. Discovery – Reuters31.10.25, 02:27 • [views_3637]