How Netflix Won Hollywoods Biggest Deal and Changed the Entertainment World

Post by : Saif Nasser

Netflix has made one of the most important moves in modern entertainment by agreeing to buy Warner Bros Discovery for 72 billion. This deal marks one of the biggest turning points in Hollywood in the last decade. What began as a simple effort to study the market soon became a bold step that surprised many people in the industry. Netflix, which started many years ago as a small DVD delivery company, is now taking over one of the most historic studios in the world.

The idea of buying Warner Bros Discovery did not start with a clear plan. Netflix entered the process only after Warner Bros Discovery rejected several early offers from Paramount and Skydance. When Warner Bros Discovery opened an official auction on October 21, Netflix joined mainly to understand the situation. But once the company studied the numbers and the future potential, it saw a rare chance to expand its power in global entertainment.

One major reason for the interest was the huge library of films and series owned by Warner Bros. In the streaming world, old shows and movies are extremely valuable. Experts say that almost 80 percent of viewer time on many platforms comes from older titles. For Netflix, getting these assets meant having more content that keeps viewers subscribed for longer periods. Netflix also saw strong value in the studio production teams, the global distribution system, and the experience of HBO, which has a long history of creating high quality shows.

Warner Bros Discovery was already preparing to split itself into two publicly traded companies. One part would include the traditional cable TV networks, and the other would include the studio and streaming businesses. This plan created the right moment for companies like Netflix to step in with offers. Some advisers at JPMorgan even suggested that the company should spin off the cable network division first, because it would make it easier to explore options for selling the studio and streaming assets.

While Netflix showed interest, it faced strong competition from Comcast, the owner of NBCUniversal. Comcast wanted to merge its entertainment division with Warner Bros Discovery, creating a giant company almost the size of Disney. However, this plan would take many years to complete, and the Warner Bros board preferred a deal that could deliver benefits quickly. Paramount also tried to win with increasing offers, reaching 30 dollars per share, but the Warner Bros board had concerns about the funding and the ability to close the deal smoothly.

For almost two months, Netflix and its advisers worked intensely. They had daily morning calls and even continued their work during the Thanksgiving holiday. Their goal was to present a clear, complete, and confident offer before the December 1 deadline. During the final week, the board of Warner Bros Discovery met every single day. On the last day, Netflix presented its final offer, which was considered the only fully binding and reliable proposal.

Netflix also offered something that made its offer even stronger. It added a breakup fee of 5.8 billion. This is one of the largest breakup fees ever seen in a corporate deal. It showed that Netflix believed strongly that regulators would approve the sale. One adviser involved in the process said that no company offers almost 6 billion unless it is certain that it will succeed.

Late on Thursday night, Netflix finally received the news that its offer was accepted. People who were part of the call said that the team celebrated with claps and cheers. The deal is expected to change the entertainment landscape around the world. Netflix will now hold control of some of the most famous film and television brands, along with HBO and the Max streaming platform. Industry analysts believe that this could shift the balance of power in global entertainment for many years to come.

#Global News #Global Updates #Global Global News world news #Global Global News world