Netflix is buying a piece of Hollywood history, preparing an all-cash offer to acquire the Warner Bros studio legacy. The $83 billion deal includes the film studio and HBO, bringing nearly a century of cinema into the Netflix fold. The move is designed to secure these assets before a hostile rival can intervene.
The rival is Paramount Skydance, which has launched a $108.4 billion takeover bid. WBD’s board has rejected the offer due to its debt financing, but Paramount is trying to replace the board. Netflix’s all-cash offer aims to close the deal quickly and preserve the studio’s future under its banner.
The deal excludes WBD’s linear networks like CNN and the Cartoon Network, which will be spun off. This focus on the studio and streaming assets aligns with Netflix’s goal of building the ultimate content library.
The acquisition has raised concerns about market dominance. Politicians fear that a Netflix-WBD merger would create a streaming monopoly, controlling nearly 50% of the market. This backlash is a significant hurdle for the deal.
The market reaction has been positive. WBD shares rose 1.6% on the news, indicating that investors see the acquisition as a respectful and profitable new chapter for the Warner Bros legacy. For Netflix, it is the ultimate content acquisition.