Bloomberg reported on the 5th that Netflix, the streaming powerhouse, has entered exclusive negotiations with Warner Bros. Discovery’s film and TV studios to purchase the HBO Max streaming business.
According to Bloomberg, Netflix has offered a condition that it will pay a $5 billion penalty if regulators do not approve the deal, and both sides are expected to announce an agreement as early as a few days.
With the deal, Netflix has emerged as a leading candidate for acquisition over rivals Paramount Skydance and Comcast.
Warner Bros. has an overall corporate valuation of more than $60 billion, and Netflix has a market capitalization of $437 billion.
According to experts cited by Bloomberg, Netflix offered a bid of $30 per share, which Warner Bros. is valued at $75 billion.
Prior to the sale, Warner Bros. plans to separate cable channels such as CNN, TBS and TNT, Bloomberg said.
Bloomberg predicted that if the deal is completed, the merger of the world’s largest euro-streaming Netflix and Warner Bros., which has a traditional Hollywood studio, would be a game changer in the industry.
Netflix has grown through external content licenses and self-production without large-scale acquisitions, and if the deal is completed, it is considered the biggest strategic shift in the company’s history.
Once the acquisition is completed, Netflix will be able to secure vast film and TV archives, including HBO Network and “Harry Potter” and “Friends.”
The competition was fierce. Paramount said Warner Bros. had carried out the process in favor of Netflix, accusing it of tainted sales procedures, and stressed that its bid was more favorable in terms of possible regulatory approval.
Warner Bros. officially sought a sale in October, attracting interest from several companies, and eventually entered exclusive negotiations with Netflix.
However, Bloomberg predicted that if Netflix and Warner Bros. combine, the number of subscribers worldwide will reach about 450 million, forcing anti-trust investigations in the U.S. and Europe.
Netflix is making deregulation logic, arguing that bundling (bundling) can lower consumer prices.
There is also opposition from political circles. California Republican Darrell Isaacs and Utah Republican Senator Mike Lee have submitted their objections to regulators, saying Netflix’s acquisition of Warner Bros. could cause consumer damage.
SAM KIM
US ASIA JOURNAL
