Entertainment
oi-Ruchika Pareek
Netflix
has
finalized
a
landmark
$72
billion
deal
to
acquire
Warner
Bros
Discovery’s
TV
and
film
studios
along
with
its
streaming
division,
marking
one
of
the
biggest
shake-ups
in
Hollywood’s
history.
The
agreement,
announced
on
Friday,
concludes
a
fiercely
competitive
bidding
war
in
which
Netflix
outpaced
Paramount
Skydance
with
an
offer
of
nearly
$28
per
share,
surpassing
Paramount’s
nearly
$24-a-share
proposal
for
the
entire
Warner
Bros
Discovery
entity,
including
its
cable
TV
assets
planned
for
a
spinoff.
Warner
Bros
Discovery
closed
at
$24.5
per
share
on
Thursday,
with
a
total
market
valuation
of
$61
billion.
The
acquisition
grants
Netflix
control
over
iconic
franchises
such
as
“Game
of
Thrones,”
“DC
Comics,” and
“Harry
Potter,”
shifting
the
balance
of
power
even
further
toward
the
streaming
giant.
The
move
strengthens
Netflix’s
position
against
competitors
like
Disney
and
the
Ellison
family-backed
Paramount,
especially
as
it
expands
into
gaming
and
explores
new
revenue
streams
following
its
successful
password-sharing
crackdown.
Netflix
completed
a
$72
billion
deal
to
acquire
Warner
Bros
Discovery’s
TV
and
film
studios
and
streaming
division,
outbidding
Paramount
Skydance
at
$28
per
share,
which
grants
Netflix
control
over
franchises
like
Game
of
Thrones
and
DC
Comics.
Antitrust
scrutiny
is
expected
in
the
U.S.
and
Europe.
Industry
analysts
suggest
that
Netflix
aims
to
secure
long-term
rights
to
blockbuster
content
and
reduce
dependence
on
external
studios.
However,
the
deal
is
expected
to
undergo
intense
antitrust
scrutiny
in
both
the
U.S.
and
Europe,
as
it
gives
the
world’s
largest
streaming
platform
ownership
of
a
major
rival
with
nearly
130
million
streaming
subscribers,
including
HBO
Max.
Paramount,
led
by
David
Ellison,
initially
triggered
the
bidding
war
with
unsolicited
offers
and
earlier
this
week
raised
concerns
about
the
fairness
of
the
sale
process,
hinting
at
preferential
treatment
toward
Netflix.
To
counter
fears
of
market
consolidation,
Netflix
argued
during
negotiations
that
combining
HBO
Max
with
its
own
service
could
benefit
consumers
by
lowering
the
cost
of
bundled
offerings,
Reuters
reported
Tuesday.
Additionally,
Netflix
has
assured
Warner
Bros
Discovery
that
it
will
continue
to
release
the
studio’s
films
in
cinemas,
attempting
to
alleviate
industry
concerns
over
the
potential
disappearance
of
another
major
theatrical
film
producer.
