Squawk on the Street Netflix Wins Bidding War, Agrees to Buy Warner Bros. In $72B deal 12/5/25
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Dec 5, 2025 Hedl Doshi, a former Deputy Assistant Attorney General for Antitrust, joins to dissect Netflix's $72 billion acquisition of Warner Bros. He highlights the significant antitrust risks and regulatory scrutiny this deal may face. The conversation dives into the potential political pushback, particularly from the White House, and the lengthy DOJ review process ahead. Doshi emphasizes the need for regulators to focus on competition rather than merely industry scale, and he warns about the potential creative impacts on creators in this evolving landscape.
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Netflix's $72B Bet On Warner Bros.
- Netflix agreed to acquire Warner Bros. for an equity value of $72 billion, mostly cash with a small stock component. 85% of the consideration is cash and the deal values the studio and streaming business at $27.75 per share.
Deal Signals A High Multiple And Leverage
- David Faber noted the price paid implies a high multiple around the upper-20s to ~30x EBITDA and adds heavy leverage to Netflix's balance sheet. The company will be >4x levered initially and faces questions about multiple erosion and strategic risk.
Antitrust Risk Will Drive A Long Review
- Hosts flagged major antitrust and regulatory risk because the deal combines dominant streaming players and could face multi-jurisdictional review. The merger agreement includes a $2.8 billion breakup fee payable by Warner Bros. to Netflix.
