Dec. 5, 2025 "Netflix to acquire Warner Bros. Discovery for $72B US": Today I found this article on CBC:
Netflix has agreed to buy Warner Bros. Discovery's TV and film studios and streaming division for $72 billion US,
a deal that would hand control of one of Hollywood's most prized and oldest assets
to the streaming pioneer
that has upended the media industry.
The agreement announced Friday follows a weeks-long bidding war where
Netflix seized the lead with a nearly $28-a-share offer
that eclipsed Paramount Skydance's nearly $24 bid
for the whole of Warner Bros. Discovery,
including the cable TV assets slated for a spinoff.
Netflix shares were down nearly three per cent in morning trading, while Warner Bros. Discovery shares were up over 2.7 per cent.
Buying the owner of marquee franchises including
Game of Thrones,
DC Comics
and the Harry Potter franchise
will further tilt the power balance in Hollywood
in favour of the streaming giant
that built its dominance
without major acquisitions
or a large content library.
Warner Bros. has produced several best picture winners at the Academy Awards historically, including Casablanca, My Fair Lady, Unforgiven and The Departed.
"For more than a century, Warner Bros.
has thrilled audiences,
captured the world's attention,
and shaped our culture,"
David Zaslav, CEO of Warner Bros. Discovery, said in a statement.
"By coming together with Netflix,
we will ensure people everywhere will continue to enjoy the world's most resonant stories for generations to come."
But the deal will likely face strong antitrust scrutiny in Europe and the U.S. as it would give
the world's biggest streaming service
ownership of a rival that is home to HBO Max
and boasts nearly 130 million streaming subscribers.
Cinema United, a global exhibition trade association, said in a statement on Friday the deal poses an "unprecedented threat" to movie theatres worldwide.
"In light of the current regulatory environment this will raise eyebrows and concerns. The combined dominant streaming player will be heavily scrutinized," said PP Foresight analyst Paolo Pescatore.
Pledge to maintain cinema showings
Warner Bros. Discovery had reportedly also received offers from
Paramount Skydance
and Comcast.
Paramount and Comcast did not immediately respond to requests for comment.
David Ellison-led Paramount, which kicked off the bidding war with a series of unsolicited offers and has close ties with the current administration
— his father, Oracle co-founder Larry Ellison, is a longtime friend of Donald Trump
— questioned the sale process earlier this week in a letter alleging favourable treatment to Netflix.
Paramount Skydance shares were down 7.4 per cent.
To ease concerns about market concentration,
Netflix argued in deal talks that a potential combination of its streaming service with HBO Max
would benefit consumers by lowering the cost of a bundled offering,
Reuters reported on Tuesday.
The company has also told Warner Bros. Discovery that it would keep releasing the studio's films in cinemas in a bid to ease fears
that its deal would eliminate another studio and major source of theatrical films,
according to media reports.
"We're highly confident in the regulatory process. This deal is
pro-consumer,
pro-innovation,
pro-worker,
it's pro-creator,
it's pro-growth,"
Sarandos said on a call after the deal was announced.
Analysts have said Netflix is driven by a desire to
lock up long-term rights to hit shows and films
and rely less on outside studios
as it expands into gaming
and looks for new avenues of growth
after the success of its password-sharing crackdown.
The company has leaned on its ad-supported tier to drive growth,
but that is not expected to become a major revenue engine until next year.
Warner Bros. Discovery was created just three years ago when AT&T spun off WarnerMedia,
which was merged with Discovery Communications
in a $43 billion deal.
Trump has a history dating back to his first term of getting involved in big media mergers and weighing in on one side.
He actively lobbied his Department of Justice to stop AT&T's $85 billion purchase of Time-Warner, voicing concerns about media concentration.
Lawmakers on both sides of the aisle have expressed concerns this week.
"A Netflix-Warner Bros. would create one massive media giant with control of
close to half of the streaming market threatening to force Americans into
higher subscription prices
and fewer choices over what
and how they watch,
while putting American workers at risk,"
said Massachusetts Democratic Sen. Elizabeth Warren, who supports strong antitrust enforcement.
Republican Sen. Mike Lee of Utah said on Wednesday that
"increasing Netflix's dominance this way would mean
the end of the Golden Age of streaming
for content creators
and consumers."
Netflix could counter that by pointing to
shifting media habits
and the lead of Alphabet's YouTube among streaming apps in terms of time spent watching on television.
The Justice Department's antitrust unit is led by Gail Slater, a former executive at Fox Corp. and Roku and, later, an economic advisor to Vice-President JD Vance.
Group of Hollywood creators reportedly concerned
Under the deal, each Warner Bros. Discovery shareholder will receive
$23.25 in cash
and about $4.50 in Netflix stock per share,
valuing Warner at $27.75 a share,
or about $72 billion in equity
and $82.7 billion, including debt.
The deal is expected to close
after Warner Bros. Discovery spins off its global networks unit,
Discovery Global, into a separate listed company,
a move now set for completion in the third quarter of 2026.
Back in June, Warner Bros. Discovery outlined plans to split its cable and streaming offerings — with
HBO,
HBO Max,
as well as Warner Bros. Television, Warner Bros.
Motion Picture Group
and DC Studios,
to become part of a new streaming and studios company.
Meanwhile, networks like
CNN,
Discovery
and TNT Sports
and digital products such as the Discovery+ streaming service
and Bleacher Report
would make up a separate cable counterpart.
It's not clear how approval of Netflix's bid would ultimately affect Canadian viewers,
if at all.
Warner Bros. Discovery licenses HBO content to Crave,
with that subscription service offered by Bell Media heralding an exclusive, multi-year deal in 2024.
A consortium of leading film industry figures urged U.S. Congress to intervene
and oppose a Netflix acquisition,
Variety reported on Thursday.
In an email to members of Congress, the consortium, calling themselves "concerned feature film producers," said they left their letter unsigned out of fear of retaliation,
citing Netflix's significant both as a buyer and distributor, according to Variety.
Reuters could not independently verify the report.
With files from CBC News and The Associated Press
https://www.cbc.ca/news/entertainment/us-netflix-warner-bros-acquisition-9.7004170
Dec. 5, 2025 "Netflix-Warner Bros deal faces antitrust pushback even as company touts benefits": Today I found this article on BNN Bloomberg:
Netflix pitched its US$72 billion acquisition of Warner Bros Discovery’s studios and streaming division as aligned with the priorities of U.S. President Donald Trump’s competition enforcers on Friday, but intense antitrust scrutiny is all but guaranteed.
Netflix executives touted the deal as
creating jobs
and giving the company’s 300 million subscribers “more bang for their buck” by adding more content
at a time when the administration is focused on affordability and lower prices for consumers.
But even before it was announced, Netflix’s defense of the deal faced criticism from Republicans in Congress, who have
warned that Netflix absorbing HBO Max and Warner Bros’ content rights
would reduce choice for consumers
and give the company an unacceptably high share of the streaming market.
U.S. Senator Mike Lee, a Republican from Utah who leads the Senate antitrust committee, said Wednesday that a Netflix buy of Warner Bros Discovery’s streaming assets
“should send alarm to antitrust enforcers around the world.”
“Netflix built a great service,
but increasing Netflix’s dominance this way would mean
the end of the Golden Age of streaming for content creators
and consumers,”
Lee wrote in a post on social media site X.
Republican Senator Roger Marshall of Kansas and Representative Darrell Issa of California also called on U.S. antitrust enforcers last month to scrutinize the deal,
saying that a lack of competitive pressure would incentivize Netflix to
shoot and release fewer movies in theaters.
The deal, given its size alone, is likely to face significant antitrust review by the U.S. Department of Justice,
and also because the addition of HBO Max’s 128 million subscribers
to Netflix’s more than 300 million would create a formidable player.
That said, Netflix can point to shifting media habits and the fact that
Alphabet’s YouTube has recently been the most popular way for Americans to watch TV.
While Netflix came in with the highest bid for the studio and streaming assets,
it has been the political underdog compared with
David Ellison-led Paramount Skydance,
which has close ties with the Trump administration.
“We’re highly confident in the regulatory process.
This deal is
pro-consumer,
pro-innovation,
pro-worker,
it’s pro-creator,
it’s pro-growth,”
Netflix CEO Ted Sarandos said after the deal was announced.
The DOJ antitrust unit is led by Gail Slater, a former executive at Fox Corp. and Roku. She was later an economic advisor to U.S. Vice President JD Vance, and since her confirmation has spoken often on using antitrust to protect American consumers, workers and innovation.
President Donald Trump has a history of getting involved in big media mergers and weighing in on one side.
He actively lobbied his Department of Justice to stop AT&T’s $85 billion purchase of Time-Warner,
voicing concerns about media concentration
and his own displeasure with Time-Warner’s CNN cable network.
AT&T ultimately won in court in 2018 and 2019.
(Reporting by Jody Godoy; editing by Chris Sanders and Franklin Paul)
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