Fans of Game of Thrones and Harry Potter may soon be logging into Netflix to watch their favorite shows, as the streaming giant prepares an all-cash offer to finalize its purchase of Warner Bros Discovery’s content assets. The $83 billion deal is being fast-tracked to secure these premium franchises and fend off a rival bid from Paramount Skydance.
The acquisition targets WBD’s “prize assets,” specifically the Warner Bros film studio and the HBO network. This would bring iconic characters like Batman and Superman, as well as hit series like Succession, into the Netflix library. WBD’s other operations, including CNN and the Discovery Channel, are not part of the deal and will remain independent.
Netflix’s decision to pay cash is a strategic move to outmaneuver Paramount. Paramount, backed by the Ellison family, has offered $108.4 billion for WBD, but the bid is hostile and debt-heavy. WBD’s management has already rejected it, but Paramount is fighting back by trying to install new board members who might look more favorably on their offer.
The deal has not been without controversy. Figures in the entertainment industry and US politicians have raised alarms about the consolidation of power. They argue that merging WBD’s library with Netflix’s existing dominance would create a market imbalance, potentially harming consumers and creators alike.
Nevertheless, the business logic appears to be winning over Wall Street. Stocks for both Netflix and WBD rose following reports of the all-cash switch. For Netflix, the deal represents a once-in-a-generation opportunity to acquire a content library that can sustain its dominance for decades to come.