Netflix has agreed to purchase Warner Bros Discovery's core entertainment assets. The deal is valued at a staggering $72 billion. It was finalized and announced on a recent Friday.
This move concludes a fierce bidding war against rivals Paramount and Comcast. According to Reuters, it marks one of the largest media deals in a decade. The acquisition fundamentally reshapes the global streaming landscape.
Netflix initially approached the deal with curiosity. Executives quickly saw immense strategic value. The Warner Bros library is a major attraction.
Historic film and TV catalogs drive up to 80% of streaming viewership. Netflix also gains Warner Bros' theatrical distribution arm. This provides a new revenue stream beyond subscriptions.
The HBO Max service was another key asset. Netflix believes its technical expertise can accelerate its growth. The deal transforms Netflix from a pure streamer into a full-stack media giant.
Warner Bros launched a formal auction in late October. Netflix, Paramount, and Comcast all submitted bids. The Warner Bros board met daily for eight days to evaluate them.
Netflix's offer was considered the most binding and complete. Comcast's proposal involved a complex merger taking years. Paramount's competing bid raised financing concerns.
Netflix showed supreme confidence by including a huge breakup fee. The fee is set at $5.8 billion. This signaled their belief in gaining regulatory approval.