Netflix agrees to buy Warner Bros Discovery studio and streaming business in $83bn deal

Core Viewpoint - Netflix has agreed to acquire Warner Bros Discovery for $82.7 billion, a move that will significantly alter the Hollywood film and TV landscape [1] Group 1: Deal Overview - The acquisition includes major assets such as Warner Bros, known for franchises like Harry Potter and Superman, and HBO, which produces popular shows like Game of Thrones [1][2] - The deal values Warner Bros Discovery at $72 billion, excluding debt, and is expected to close after WBD spins off its cable channels, including CNN, TBS, and TNT, anticipated by Q3 next year [2] Group 2: Financial Implications - Netflix has proposed a $5 billion breakup fee if the deal does not receive regulatory approval [3] - The company expects to achieve annual savings of $2 billion to $3 billion by the third year post-acquisition [3] Group 3: Industry Reactions - Concerns have been raised regarding potential competition issues, as the merger combines two of the largest streaming services in the U.S. [3] - Analysts have expressed skepticism about the deal, with some warning it could lead to a "catastrophic loss of long-term value" for the entertainment industry [6] Group 4: Regulatory and Competitive Landscape - Warner Bros has committed to maintaining wide cinematic releases for its films, but significant regulatory concerns persist [4] - Paramount has criticized the auction process for favoring Netflix and has argued that its bid is more likely to gain regulatory clearance [9][10]