Squawk Pod Netflix Wins Warner Bros. Discovery: IP, Antitrust, & Rivals 12/05/25
Dec 5, 2025
David Faber, a CNBC reporter known for his expertise in deal reporting, breaks down the Netflix acquisition of Warner Bros. Discovery, discussing intricate transaction details and regulatory implications. He highlights the sizable breakup fees in play and the strategic value of Warner's IP for Netflix. Meanwhile, entertainment journalist Matt Belloni, a founding partner at Puck, shares insider reactions from Hollywood, revealing the concerns creatives have about diminished opportunities and the legacy of Warner. They delve into antitrust risks and the future landscape of entertainment.
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Deal Framed Around Time Spent And IP
- Netflix is buying Warner's studio and streaming assets to capture time spent and intellectual property, not just subscribers.
- Regulators will judge the deal in the broader attention economy, not only paid streaming market share.
High Premium Raises Shareholder Questions
- Netflix is paying a large premium, largely in cash, to acquire Warner's studio and HBO content.
- That premium raises questions about whether shareholder value and Netflix's multiples are at risk.
Reverse Breakup Fee And Regulatory Risk
- The deal includes a $5.8 billion reverse breakup fee if Netflix cannot close the transaction.
- Shareholders may still view that fee as insufficient compensation for prolonged regulatory failure.