Read the memo Warner Bros. Discovery sent employees after Netflix won the bidding war for its key assets

Core Viewpoint - Netflix is acquiring Warner Bros. Discovery's studio and streaming businesses for $72 billion, marking a significant shift in the entertainment industry [1] Group 1: Deal Overview - The acquisition includes HBO Max and the Warner Bros. studio, but excludes WBD's TV networks such as CNN, TNT, and TBS [1] - This deal is the largest in the industry since Disney's acquisition of 21st Century Fox for $71 billion in 2019 [1] - Netflix outbid Paramount Skydance and Comcast in a competitive bidding process [2] Group 2: Regulatory and Structural Changes - The deal requires regulatory approval from both US and foreign governments, which may pose challenges [2] - The transaction is expected to close within 12 to 18 months if all regulatory conditions are met [2] - Warner Bros. Discovery will separate its less valuable TV assets, forming a new standalone company called Discovery Global, expected to be completed by Q3 2026 [5][6] Group 3: Strategic Implications - The merger is seen as a response to the evolving landscape of the entertainment industry, focusing on how stories are financed, produced, and distributed [6] - The combination aims to enhance consumer choice and value, strengthen the entertainment industry, and create long-term shareholder value [7] - The integration of Warner Bros. into Netflix is expected to provide a clearer path for both entities in a rapidly changing market [10]