Xin Hua Cai Jing·2025-12-06 02:32Core Viewpoint - Netflix has announced a significant acquisition of Warner Bros. Discovery's production and streaming business for a total of $82.7 billion, marking the largest acquisition in Netflix's history and one of the largest in the U.S. entertainment industry [1][2]. Group 1: Acquisition Details - The acquisition will be executed through a combination of cash and stock, with Netflix offering $27.75 per share for Warner Bros. Discovery's stock, totaling $72 billion, while also assuming over $1 billion in debt [1]. - The deal is expected to undergo regulatory review and is projected to be completed by the fall of 2026, coinciding with Warner Bros. Discovery's internal business split [2]. Group 2: Industry Impact - If successful, this acquisition is anticipated to enhance Netflix's production capabilities and expand its content library, potentially reshaping the U.S. entertainment and media landscape [3]. - Netflix expects to save between $2 billion to $3 billion annually within two years post-acquisition and to improve profitability within three years [3]. Group 3: Regulatory and Market Reactions - The acquisition will face scrutiny from U.S. antitrust regulators, with approvals required from the Department of Justice, the Federal Trade Commission, and Warner Bros. Discovery's shareholders [3]. - Market reactions to the announcement were mixed, with Netflix's stock declining by 3.03%, while Warner Bros. Discovery's stock rose by 5.89%, and Paramount Skydance's stock fell by 9.82% [3].