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Warner Bros. Acquisition War's Update: Netflix vs Paramount’s $77 Billion Battle

Warner Bros. Discovery is being fought over by Netflix and Paramount. See how this $77 billion acquisition impacts the streaming market and your watchlist.

Rendy Andriyanto

Rendy Andriyanto

— 1 min read
Warner Bros. Acquisition War's Update: Netflix vs Paramount’s $77 Billion Battle

Jakarta, Gotrade News - Warner Bros. Discovery is currently caught in a massive acquisition tug-of-war between Netflix and Paramount. This situation is set to drastically reshape the entertainment landscape and have a direct impact on how you consume content every day.

Key Takeaways:

  • The Warner board backs Netflix's $72 billion bid over Paramount's aggressive $77.9 billion offer.
  • Both scenarios face strict scrutiny from the U.S. Justice Department regarding potential streaming market monopolies.
  • President Donald Trump has hinted at unprecedented personal involvement in the decision.

The Warner board is urging shareholders to approve the sale of its studio business to Netflix for $72 billion. AP News reports that Paramount is actually moving forward with an aggressive full takeover bid worth $77.9 billion.

Regulatory Hurdles and Market Dominance

Paramount argues that a merger with Netflix would kill competition by combining massive streaming market shares. JustWatch data shows Netflix controls 20% of the U.S. market, while HBO Max holds 13%.

Netflix defends itself by claiming they compete against vast internet video libraries like YouTube, owned by Alphabet Inc.. Nielsen data notes YouTube accounted for nearly 13% of viewership this fall compared to Netflix's 8%.

Political Factors and Industry Future

Politics complicates matters as President Trump unusually stated he would be personally involved in the decision. AP News notes Trump criticized the Netflix deal despite having a good relationship with co-CEO Ted Sarandos.

This process could drag on for over a year and totally overhaul the global media industry. This consolidation has the potential to change film production and reduce content diversity for viewers like you.

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Disclaimer

Gotrade is the trading name of Gotrade Securities Inc., registered with and supervised by the Labuan Financial Services Authority (LFSA). This content is for educational purposes only and does not constitute financial advice. Always do your own research (DYOR) before investing.

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