Netflix announced this Friday (5) the purchase of Warner Bros Discovery’s TV and film studios and streaming division for US$72 billion, according to Reuters. The deal ends a dispute that lasted for weeks and puts one of Hollywood’s most traditional groups back under the control of the company that revolutionized the streaming market.
Netflix’s offer — about $28 per share — surpassed Paramount Skydance’s proposal, which had offered nearly $24 per share to acquire the entire company, including units that are expected to be separated into a new business. The previous day, Warner Bros. Discovery shares closed at $24.50, valuing the company at approximately $61 billion.
The incorporation of globally appealing franchises, such as Game of Thrones and DC Comics. The Harry Potter deal represents a milestone for the industry and strengthens Netflix’s competitive edge against rivals like Disney and Paramount. The platform’s co-CEO, Ted Sarandos, celebrated the agreement, stating: “Together, we can deliver even more of what audiences love and help define the next century of storytelling.”
Experts point out that Netflix seeks to secure long-term rights to high-impact productions and reduce its dependence on external studios, while diversifying its operations into segments such as games. Despite this, the operation is expected to face strong scrutiny from antitrust authorities in the United States and Europe, as it places the largest global streaming service in control of a competitor with nearly 130 million subscribers and owner of HBO Max.
Paramount — led by David Ellison and with ties to the administration of U.S. President Donald Trump — questioned the sale process in a letter sent this week, alleging preferential treatment for Netflix during the negotiation.
To alleviate concerns about market concentration, Netflix argued in discussions that a potential integration of its platform with HBO Max could result in lower prices for consumers, according to Reuters. The company also assured Warner Bros. Discovery that it will continue releasing studio productions in theaters, a move that attempts to dispel fears that the operation could reduce the availability of films in cinemas.
The agreement, structured in cash and stock, stipulates that each Warner Bros. Discovery shareholder will receive $23.25 in cash and approximately $4.50 in Netflix stock, valuing Warner’s shares at $27.75 each. Including debt, the transaction totals $82.7 billion. In pre-market trading, Netflix shares were down almost 3%, while Paramount shares fell 2.2%.
The completion of the purchase depends on the spin-off of the global channels unit, Discovery Global, which will be transformed into an independent company in the third quarter of 2026. Netflix estimates savings of between US$2 billion and US$3 billion annually starting in the third year after the full integration of operations.
Source: brasil247.com