Netflix's $72B Warner Bros deal could shrink both companies
3 days ago
- #Warner Bros
- #Netflix
- #Media Merger
- Netflix is acquiring Warner Bros. for $72B, taking on $59B in debt, a move seen as defensive rather than strategic.
- The deal reflects Netflix's shift from innovation to consolidation, signaling a new phase as a traditional media giant.
- Warner Bros. CEO David Zaslav views the sale as necessary due to declining legacy media value.
- Netflix's recent strategies (ads, password crackdowns, live sports) lack transformative impact.
- Regulatory approval is pending, with potential political interference from Donald Trump seeking media influence.
- Trump may leverage the deal to push right-leaning content or block Warner Bros.' TV asset spinoff.
- Paramount (owned by Trump-backer Larry Ellison's son) could also benefit politically from the deal's fallout.
- The merger's risks include debt, political pressure, and stifled creativity, harming both companies' ability to produce beloved content.