Netflix made a deal
An update on a huge deal in the entertainment sector has come out. Netflix on Friday announced the purchase of Warner Bros. Discovery’s (WBD.O) new tab TV, film studio and streaming division for $72 billion i.e. about Rs 6.47 lakh crore. After this deal, control of one of the most valuable and oldest assets of Hollywood will come into the hands of Netflix. This deal is equal to almost double the GDP of Nepal in monetary terms. This means that two countries like Nepal will have this much value. According to Trade Economics data, Nepal’s GDP was around $42 billion in the year 2024. Which can be 47 billion dollars in 2026.
The agreement follows a weeks-long bidding war, in which Netflix bid about $28 a share, beating Paramount Skydance’s (PSKY.O) bid of about $24 for all of Warner Bros. Discovery, including the cable TV assets set to be spun off.
Will these big shows be seen on Netflix?
After this deal, buying the owner of big franchises like “Game of Thrones”, “DC Comics” and “Harry Potter”, the balance of power in Hollywood will tilt further in favor of Netflix, which has so far built its dominance without any big deal or big content library. After this deal, it is possible that you will be able to watch popular shows like Game of Thrones in India also. Netflix co-CEO Ted Sarandos said that together the two companies will “help shape the direction of the next hundred years of storytelling.”
The deal may be investigated
According to Reuters, the Netflix deal is likely to face tough antitrust scrutiny in Europe and the US because it would give the world’s largest streaming service the ownership of a competitor that is home to HBO Max, which has about 130 million streaming subscribers. David Ellison’s company Paramount, which started the bidding war by making several unsolicited offers and which has close ties to the Trump administration, earlier this week raised questions over the sale process and alleged that Netflix was being treated unfairly. Even before the bids came in, some members of Congress had said that the Netflix Warner Bros. Discovery deal could harm consumers and Hollywood.
Concerns about Netflix’s growth
Analysts have said Netflix wants to retain the long-running rights to hit shows and movies and rely less on outside studios to find new avenues of growth after its success expanding into gaming and cracking down on password-sharing.
After seeing a rise of more than 80% through 2024, its shares are up just 16% this year as investors worry that its rapid growth could slow, especially after it stopped reporting subscriber figures earlier this year. The company has relied on its advertised subscription plans to drive growth, but it is not expected to become a major revenue engine until next year, while analysts say its efforts in video games have weakened due to changes in strategy and the departure of top management. However, buying Warner Bros. may further strengthen its stake in gaming. WBD is one of the few entertainment companies that has achieved major success in this sector, including its Harry Potter title “Hogwarts Legacy,” which has grossed more than $1 billion.