Sou Hu Cai Jing·2025-12-06 15:11Core Insights - Netflix announced its acquisition of Warner Bros, HBO, and HBO Max for approximately $82.7 billion, marking one of the most significant media acquisitions in the past decade, potentially reshaping the global entertainment landscape [1][4]. Group 1: Acquisition Details - Netflix initially engaged in the acquisition process to understand Warner Bros' business structure but quickly recognized the greater opportunity presented by the deal, particularly the value of the content library, which accounts for 80% of viewership on streaming platforms [4]. - The decision to pursue the acquisition was influenced by Warner Bros' announcement of a split into two publicly traded companies, creating a clearer transaction window for potential buyers [4][5]. - Netflix faced competition from Paramount and Comcast, with Paramount making multiple bids to complete a transaction before the split, aiming to maintain its traditional television network integration [4][5]. Group 2: Decision-Making Process - Morgan Stanley advised Warner Bros to adjust the order of its split to enhance operational flexibility, including the sale of its film and streaming assets [5]. - Netflix's team, along with its advisors, held daily meetings for two months leading up to the bid deadline, demonstrating a high level of commitment to the acquisition process [5]. - Warner Bros' board met for eight consecutive days before making a final decision, ultimately finding Netflix's bid to be the only binding and comprehensive proposal [6]. Group 3: Competitive Bidding - Paramount raised its bid to $78 billion at the last moment, but concerns about its financing capabilities led the board to favor Netflix's offer [6][7]. - Netflix included a substantial breakup fee of $5.8 billion to mitigate regulatory risks, reflecting its confidence in obtaining regulatory approval for the acquisition [7]. - Despite initial doubts about the likelihood of success, the announcement of the successful bid was met with enthusiasm from Netflix executives [7].