It is believed Warner Bros. Discovery had at least 2 other suitors, 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.
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, helping its efforts to ward off competition.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.
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