Netflix has agreed to acquire Warner Bros Discovery’s TV and film studios along with its streaming division in a $72 billion deal. The move would place one of Hollywood’s oldest and most influential entertainment empires under the control of a streaming giant that has dramatically reshaped the industry, reported Reuters.
Kim Forrest, Chief Investment Officer at Bokeh Capital Partners, said it was striking that Netflix emerged as the winning bidder, especially as the focus is firmly on the streaming business, Netflix’s strongest domain.
However, she cautioned that the deal will face heavy scrutiny from regulators not only in the United States but globally.
Chris Beauchamp, Chief Market Analyst at IG Group, questioned whether the acquisition would provide the spark Netflix needs to lift its weakening share price.
He pointed out that consumer data shows a significant overlap between Netflix and HBO Max subscribers, meaning immediate gains from combining the platforms may be limited.
He cautioned that competitive pressures and possible action from the White House may deepen uncertainty, saying investors seem to be seeking a bigger trigger after the stock’s five-fold rise since 2022.
