Netflix Lands Historic $72B Deal: Warner Bros Discovery Sold in Shocking Turnaround
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In a stunning move that will reshape the global entertainment industry, Netflix has acquired Warner Bros Discovery's TV, film studios, and streaming division for a whopping $72 billion. The deal marks one of the largest media mergers in the past decade, with Netflix outbidding Paramount and Comcast in a closely watched auction. The acquisition, which was finalized on Thursday, follows months of intense negotiations between Netflix and Warner Bros Discovery's board. Initially, Netflix had downplayed speculation about buying a major Hollywood studio, but the streaming giant saw an opportunity to expand its offerings and improve its competitive edge. Warner Bros Discovery's business units, including its theatrical distribution and promotion unit, as well as its studio, were seen as a perfect fit for Netflix. The deal also includes the HBO Max streaming service, which will benefit from Netflix's expertise and insights gained over the years. Netflix and Warner Bros Discovery did not comment on the deal, but sources close to the matter revealed that the streaming service was advised by JPMorgan Chase & Co, Moelis & Co, Wells Fargo, and Skadden, Arps, Slate, Meagher & Flom. The Warner Bros board, on the other hand, convened daily for the last eight days leading up to the decision. In the end, Netflix's offer was deemed more attractive to the Warner Bros board, which favored the streaming service's deal over Comcast's proposal to merge its entertainment division with Warner Bros Discovery. Paramount, which had raised its offer to $78 billion, was also edged out due to concerns over financing. The deal comes with a significant regulatory review, but Netflix has put forward a $5.8 billion breakup fee, a sign of its confidence in securing approval. As news of the deal spread, Netflix executives were left cheering, with one executive revealing that they had only a 50-50 chance of winning the bid until the very end.
