Netflix acquires Warner Bros. Discovery for 83 billion: revolution in the streaming and cinema market

Netflix is buying Warner Bros. Discovery , or rather actually its large film and streaming assets, in a deal with a debt-inclusive enterprise value of nearly $83 billion, displacing rivals Paramount Skydance and Comcast. The companies' announcement came in the early US morning, after it had come to light earlier in the evening that the streaming queen had emerged victorious in the auction by putting on the table a $27.75 per share, cash share offer. The deal, which without debt has an equity value of 72 billion, is expected to be completed in 12-18 months. A $5.8 billion break-up fee, a payment in the event of a rejection by antitrust and regulatory authorities in the US and Europe, is also expected. The decision came after multiple bidding rounds from all three companies, the latest this week.

"Our mission has always been to entertain the world," said Netflix co-Ceo Ted Sarandos, adding that the merger may "define the next century of storytelling". David Zaslav, CEO of Warner Bros. Discovery, for his part stated that 'by joining with Netflix we will ensure that people everywhere will continue to enjoy the best stories for generations'. However, antitrust scrutiny on both sides of the Atlantic is expected to be severe.

In a conference call, Netflix executives pointed out that Warner shareholders will receive $23.25 in cash, the rest in Netflix stock. They emphasised the large content library of the acquired company and stated that the merger is intended to significantly boost production capacity in the United States, a goal also dear to the Trump administration. Within three years, financially, the merger is expected to generate annual cost savings of between two and three billion. Executives have assured that it will increase shareholder value. Sarandos called the deal 'a rare opportunity' to be seized for the future because, despite its leadership position now consolidated by popular shows such as Stanger Things and KPop Demon Hunters, Netflix 'cannot stand still'.

Netflix intends to combine its activities with Warner's jewels, the historic and colossal film and television studios in Burbank, a vast library of titles such as Harry Potter, Superman, Batman, the series Friends and also the prestigious streaming service Hbo Max, author over the years of hit shows from The Sopranos to White Lotus. A brand that is preparing to debut in Italy. The Hbo brand will continue to operate independently, asserted Netflix co-CEO Greg Peters. Prior to the merger, Warner will instead spin off the cable channels, from Cnn to Tbs and Tnt, which are not in Netflix's plans. The spinoff is expected by late summer 2026. The entire Warner Bros. Discovery, prior to the merger announcement, had a stock market valuation of more than 60 billion but the traditional television network division is in increasing trouble, with revenue declining 23% in the last quarter, ahead of viewer and advertiser outflows.

Netflix's pole position had become clear in the last few hours in the face of protests from the new Paramount Skydance, led by David Ellison, son of Larry Ellison, which according to the Wall Street Journal had offered more, up to $30 per share all cash for the entire Warner Bros. Discovery, without the need for spin-offs. In two letters sent to Warner's board in recent days, Ellison criticised the sale process as flawed and specifically attacked Netflix, claiming that it was being favoured despite the fact that its proposal raised serious anti-monopolistic objections due to its dominance in streaming. Ellison was also counting on his privileged relationship with the Donald Trump administration to win the day: his father Larry, founder of Big Tech Oracle, is among the President's big financiers. Recently, his original company, Skydance, had already been given the green light by the administration to take over the much larger Paramount and appointed a new head of news to its Cbs network, the conservative and anti-woke Bari Weiss. It is not excluded by analysts that, faced with a defeat, the Ellisons may explore legal recourse.