Netflix apparently wasn’t solely eyeing Warner Bros. According to a recent report, the global streaming service was considering major acquisitions, such as Disney and Fox, before going after Warner Bros. However, Netflix shelved those big-name ambitions due to internal clashes and fears of overpaying for heavy-hitting assets.
Netflix attempted to buy Disney and Fox amid Warner Bros. deal
In a decisive business move that’s shaking up Hollywood, Netflix announced a billion-dollar deal to acquire Warner Bros. Discovery’s studios and HBO Max. Having said that, the streaming giant’s original acquisition plan also included Disney and Fox (via Bloomberg). Netflix had even considered snatching Electronic Arts (EA), but internal disagreements and fears of high cost scrapped those plans.
For those curious to know more about the massive merger, here’s how the takeover dream became a reality.
In mid-November, Ted Sarandos, co-CEO of Netflix, met with President Donald Trump at the White House. What followed was more than an hour-long discussion on the Warner Bros. Discovery auction. While Trump emphasized selling to the highest bidder, Sarandos made the case for Netflix, arguing that it’s not a monopoly and that it had recently experienced subscriber losses.
On Friday, December 5, Netflix beat rival bidder Paramount Skydance Corp. to a whopping $82.7 billion deal, including debt, to acquire WBD studios. Sarandos saw this blockbuster buyout as a game-changer. He claimed that it’ll “accelerate business for decades” by merging Netflix’s global streaming power with Warner Bros.’ iconic content and production muscle. The merger would help boost Netflix’s offerings, giving 300 million subscribers more bang for their buck.
With Paramount prepping for a hostile $108.4 billion bid and lobbying in Washington against Netflix, the drama is far from being over. Warner Bros. still needs to spin off struggling cable networks.
Furthermore, the Justice Department under President Trump might block the deal due to antitrust concerns. Trump, who had warned that the Netflix-Warner Bros. combo “could be a problem” because of market share, will be involved in the decision.
Originally reported by Sibanee Gogoi on Mandatory.
This story originally appeared on Realitytea
