Netflix (NFLX) is set to acquire Warner Bros. Discovery's (WBD) studio and streaming assets in a $72 billion deal, plus debt, bringing Hollywood’s most storied film and TV studio and the world’s largest streaming platform together in one of the biggest entertainment deals in history. The companies announced Friday that they entered into a definitive agreement, subject to regulatory approval, that will give Netflix control of Warner Bros.’ film and TV studios, as well as HBO and HBO Max. The deal is set t ...

Core Viewpoint - Warner Bros. Discovery is preparing for a potential bidding war, with Paramount Skydance planning a multibillion-dollar takeover offer, while CEO David Zaslav is actively seeking interest from other media and tech companies [1][2]. Group 1: Company Strategy and Market Position - Zaslav aims to increase Warner Bros. Discovery's stock price to approximately $40 per share, up from a recent close of just above $16, which would elevate the company's market value to around $40 billion [4]. - The company plans to split into two publicly traded entities, one focusing on streaming and studios, and the other on cable networks, with the spinoff expected in April [6]. - Prior to the buyout interest, Warner Bros. Discovery shares had been underperforming as Zaslav concentrated on cost-cutting measures and reducing $35 billion in debt [8]. Group 2: Competitive Landscape - David Ellison's Paramount Skydance is reportedly preparing an all-cash bid for Warner Bros. Discovery, which has led to a nearly 30% surge in the company's stock price following the news [6][10]. - Other tech giants like Amazon, Apple, and Netflix are also being considered as potential bidders, as they are actively expanding their content offerings [9]. - The regulatory environment is perceived to be more favorable for mergers under the current administration, which could facilitate potential deals in the media sector [11][15]. Group 3: Industry Dynamics - The media landscape is shifting, with cash-rich tech companies increasingly seeking content to enhance their streaming services, creating a competitive environment for acquisitions [9]. - Jay Penske has shown interest in acquiring CNN, indicating ongoing consolidation trends within the media industry [7].