One of the most historic names in cinema, Warner Bros, is set to join the Netflix family under a revised acquisition pact. Netflix is planning to switch to an all-cash offer to finalize its $83 billion purchase of WBD’s studio and streaming businesses. The move aims to accelerate the integration of the two companies and fend off a hostile rival.
The rival in question is Paramount Skydance, which has offered $108.4 billion for WBD. Despite the higher figure, WBD’s board has rejected the bid due to its heavy debt load. Paramount is now fighting a proxy battle to replace the board, making speed a critical factor for Netflix.
Netflix’s all-cash offer covers the purchase of the Warner Bros film studio and HBO, the home of Game of Thrones. WBD’s linear television assets, such as CNN and the Cartoon Network, are excluded from the deal and will remain with current shareholders as a separate company. This split allows Netflix to acquire the assets it wants without the burden of traditional cable networks.
The deal has sparked concern among lawmakers and industry insiders, who fear a monopoly. Estimates suggest the new company could control 50% of the streaming market, a dominance that could harm competition. These antitrust concerns are expected to be a major hurdle in the coming months.
Despite the regulatory risks, Wall Street is optimistic. WBD shares rose 1.6% and Netflix shares rose 1% on the news. The market reaction indicates that investors see the all-cash deal as a win-win, providing value to shareholders and content to Netflix.
Warner Bros Studios to Join Netflix in Revised All-Cash Pact
