The Motley Fool·2025-12-09 20:17Core Viewpoint - Netflix was considering acquiring Warner Bros. Discovery for $82.7 billion but is unlikely to pursue a deal with Disney due to prohibitive costs and Disney's strong market position [1][3][14] Group 1: Acquisition Dynamics - Paramount Skydance has made a hostile bid of $108 billion for Warner Bros. Discovery, which complicates Netflix's acquisition plans [2] - Warner Bros. Discovery's stock has increased by 160% this year, reflecting the competitive bidding environment [5] - Disney's market cap is $192 billion, with an enterprise value of $237 billion, making it a significantly more expensive target than Warner Bros. Discovery [6] Group 2: Financial Considerations - A serious offer for Disney would need to exceed $300 billion to be considered by its board, which is substantially higher than the potential cost for Warner Bros. Discovery [9] - Netflix's current market cap is $410 billion, indicating that a merger with Disney would be akin to a merger of equals, which Netflix is not seeking [9][10] Group 3: Content and Market Position - Netflix would gain valuable intellectual properties from Warner Bros. Discovery, such as DC Comics and Harry Potter, but would prefer Disney's assets like Marvel and Pixar [11] - Disney+ has already surpassed HBO in premium streaming audience size, showcasing Disney's strong position in the streaming market [12] - Disney operates popular theme parks and cruise ships, which would provide Netflix with a significant advantage in consumer-facing markets if a deal were to occur [13]