Netflix to Buy Warner Bros. in Historic $72 Billion Deal

Dec 5, 2025

Guest

Eric Weiner

Guest

Rebecca Homkes

Guest

Felix Gillette

Felix Gillette, Bloomberg News media editor, dives into Netflix's monumental $72 billion acquisition of Warner Bros., highlighting the mix of cash and stock involved. Rebecca Homkes, a business lecturer, raises concerns about the potential creation of an AI bubble and the risks to consumer spending habits. Eric Weiner, senior editor at Bloomberg, discusses market reactions and the anticipated impacts on the Federal Reserve’s policies. The conversation sizzles with insights into power shifts in entertainment and the delicate balance of technological and traditional business dynamics.

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INSIGHT

Netflix Wins Unexpectedly

Netflix surprised many by winning the bid to buy Warner Bros. assets despite expectations the Ellison-backed offer might prevail.
The deal reflects Netflix's evolution from disruptor to dominant entertainment acquirer.

INSIGHT

Cable Networks To Be Spun Off

Warner Bros. Discovery will spin off legacy cable networks like CNN, TNT, and TBS before selling its studio assets.
The spinoff preserves cash-generating but declining assets for potential future consolidation.

INSIGHT

Culture Clash Risks Loom

Culture clashes have plagued past mega-mergers involving Warner assets, raising questions about integration with Netflix.
Netflix argues it has become an entertainment company capable of managing creative brands, not just a tech platform.

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Netflix Inc. agreed to buy Warner Bros. Discovery Inc., marking a seismic shift in the entertainment business as a Silicon Valley-bred streaming giant tries to swallow one of Hollywood’s oldest and most revered studios.

Under terms of the deal announced Friday, Warner Bros. shareholders will receive $27.75 a share in cash and stock in Netflix, valuing the business at $82.7 billion including debt. The total equity value of the deal is $72 billion. Warner Bros. will spin off cable networks such as CNN and TNT into a separate company before concluding the sale of its studio and HBO to Netflix.

Media mergers of this scale have a rocky history and this one is expected to bring intense regulatory scrutiny in the US and Europe. Paramount Skydance Corp., which accused Warner Bros. of running an unfair sales process, could also take steps to disrupt the transaction, like by taking an offer directly to shareholders. The company declined to comment.

The Netflix deal combines two of the world’s biggest streaming providers with some 450 million subscribers. Warner Bros.’ deep library of programming gives Netflix content to sustain its lead over challengers like Walt Disney Co. and Paramount.

Today's show features:

Bloomberg News Media and Entertainment Editor Felix Gillette on Netflix agreeing to buy Warner Bros. Discovery Inc. in a deal valuing the business at $82.7 billion including debt
Karin Kimbrough, Chief Economist at LinkedIn, on the health of the US labor market and economy
Rebecca Homkes, Faculty at the London Business School and at Duke Corporate Executive Education, on how executives should be evaluating the health of consumers, market concentration risk and AI bubble concerns
Bloomberg Tech Co-Host Ed Ludlow on Elon Musk’s SpaceX reportedly telling investors and financial institution representatives that it is aiming for an initial public offering in 2026
Bloomberg News Senior Editor, Equities Americas Eric Weiner recaps the week in markets and looks ahead to the Federal Reserve’s upcoming rate decision

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