The battle for control of Warner Bros Discovery has taken a decisive turn after Netflix will announce an agreement to buy its studio assets and streaming platformsThese include HBO Max (now Max) and some of Hollywood's most profitable franchises. The deal, valued at around $82.700 billion, places Reed Hastings' company at the center of the reshaping of the global audiovisual business.
The move not only strengthens Netflix's position in the United States, but also This opens a new scenario for the European and Spanish market.where HBO Max and Netflix have thus far had distinct strategies. The integration of catalogs and brands, along with pressure on subscription prices, could completely transform the streaming entertainment landscape for users across the continent.
A historic acquisition that redefines the streaming landscape
On December 5, Netflix announced that it had reached an agreement in principle to acquire the studio assets and video-on-demand platforms of Warner Bros Discovery (WBD)In a transaction valued at approximately $82.000-82.700 billion, including nearly $10.000 billion in debt, it is one of the largest corporate deals in the history of the audiovisual sector.
Netflix's offer focuses on the heart of the entertainment business: Warner Bros studios and the streaming services HBO Max/MaxIn addition to major associated franchises, such as the DC universe, sagas like Harry Potter, and classics from the studio's historical catalog, traditional cable channels, including Discovery and CNN, are excluded, at least in the initial proposal.
To finance the operation, the streaming company has resorted to a multi-billion dollar loan, estimated at around $59.000 billionThis is in addition to its own cash generation capacity. The magnitude of the debt reflects the strategic importance the company places on the Warner acquisition, far exceeding previous acquisitions in the sector, such as Amazon's purchase of Metro-Goldwyn-Mayer in 2021.
With the acquisition of Warner Bros, various analyses place the Netflix's global market share of video on demand is around 21%.This solidifies its position as the world's leading streaming platform by subscribers. In the United States, the combined control of Netflix and HBO Max would reach approximately 30% of the SVOD market, raising concerns among regulators and competitors.
In official statements, Netflix management has argued that the merger will allow "to offer greater variety and greater value" to consumers through bundled packages and a more aggressive pricing structure. Behind this message lies the possibility that the group will adopt a price-dominance strategy, capable of driving down rates in the short term to gain volume and, once rivals are weakened, gaining room to maneuver in pricing.
Paramount Skydance, a direct competitor with a higher offer
Netflix's announcement hasn't ended the battle for Warner Bros. Discovery. Just a few days later, Paramount Skydance (PSKY) submitted a counteroffer valuing the entire group at approximately $108.400 billionwith a higher share price and, unlike Netflix, the intention to acquire the entire WBD portfolio, including CNN and the rest of the cable networks.
Paramount's proposal, led by David Ellison, son of Oracle founder Larry Ellison, relies on additional financial muscleLarry himself has offered a personal and irrevocable guarantee of $40.400 billion to support the deal. The offer includes an estimated payment of $30 per share, compared to the $23-$27 per share being discussed for Netflix, depending on the cash and stock structure.
This clash of offers is not just financial. Inside and outside the United States, the dispute is interpreted as a clash between two opposing political and cultural visionsOn one side, Paramount Skydance, with strong ties to the conservative environment and a fluid relationship with the Donald Trump administration; on the other, Netflix, associated with a more liberal and progressive image in terms of content and public positioning.
Many analysts believe that, on paper, Paramount starts with a certain political and regulatory advantage In Washington, due to its ties to the Republican Party and Trump's circle. However, the market and the large funds that control about a quarter of WBD's capital—such as Vanguard, BlackRock, and State Street—also seem to value Netflix's experience as a global streaming operator.
While the White House and US competition authorities have debated the concentration risks that a merger between Netflix and Warner would entailThe board of directors and major shareholders of WBD are still evaluating which offer best aligns with their financial and strategic interests. The deadline for a decision has been set around January 21, although the terms may be adjusted if there are further price improvements.
David Zaslav's key role in the operation
At the center of this multi-million dollar game is David Zaslav, CEO of Warner Bros Discovery Since the merger of both companies in 2022, his contract and stock option packages make him one of the biggest beneficiaries, regardless of whether the final buyer is Netflix or Paramount Skydance.
Zaslav, one of Hollywood's highest-paid executives, has accumulated in recent years compensation valued at hundreds of millions of dollarsThis has generated controversy among some shareholders and the public, especially considering the layoffs and restructuring carried out within the group. Even so, their contract was renewed until 2030, with new share purchase options that are activated precisely in scenarios of a sale or change of control.
If the Netflix deal goes through at the expected price—around $27-$27,75 per share—Zaslav's various options and conditional shares could translate into more than $700 million in potential personal gainAccording to estimates from US business media, the profit would be even greater if Paramount's takeover bid for $30 per share were successful.
The design of his contract fits with the original plan that Zaslav has advocated in recent years: divide WBD into two large blocksOn one side, Warner Bros. (studios and digital platforms) and on the other, Discovery Global (linear television and cable channels), to facilitate a possible sale in parts. This is precisely the model proposed by Netflix, which is only interested in the film, series, and streaming segment.
Sources close to the company indicate that Zaslav himself had been leaning in recent months towards support the Netflix option, considering that his proposal better fits the corporate design he had envisioned for Warner Bros and the future of HBO Max, both in the United States and in Europe.
A colossal catalog and its impact on Europe
Beyond the numbers, the main appeal of the deal for Netflix lies in the huge catalog of content from Warner Bros and HBO. Iconic series , the The Sopranos, Sex and the City, Game of Thrones, The Wire o Friends, along with decades of classic Hollywood cinema, would become integrated into the ecosystem of the red platform, either by maintaining the Max brand as a parallel service or by gradually merging both proposals under the same umbrella.
For Europe, and in particular for Spain, this means that one of the most highly regarded catalogs by series enthusiasts It could arrive bundled within new combined offers, with subscriptions integrating both Netflix original content and the back catalogs of Warner and HBO. The question is how this will affect distribution agreements already signed in different countries, as well as local regulatory obligations.
In France, for example, Netflix pledged to invest 4% of its annual gross revenue generated in the country. in the financing of French and European cinemaIn exchange for greater flexibility in distribution windows. In Spain, the company has also gradually increased its production of fiction and documentaries, both for image reasons and to comply with European content quotas. The acquisition of HBO Max could strengthen this presence or, conversely, concentrate decision-making in an even more centralized body.
From its first major original production, House of CardsNetflix has built a strategy based on to integrate into local audiovisual ecosystemsParticipating in festivals, supporting film archives and select cinemas, and forging numerous agreements with European producers. The addition of Warner Bros., responsible for the work of filmmakers like Stanley Kubrick and Clint Eastwood, fits into this aspiration to combine volume, prestige, and global reach.
At the same time, the operation reinforces the role of platforms such as instruments of American "soft power"Through series, films and documentaries that circulate with hardly any borders, the United States projects its cultural imagery and its vision of the world, something that does not go unnoticed in the debates on diversity, representation and media plurality in the European Union.
Labor consequences and change in industrial model
While the big numbers grab headlines, unions and industry professionals view the deal with suspicion. The American writers' guild WGA has warned that A merger of this size could result in mass layoffs, lower wages, and less diversity of content. For the public. For many workers, the concentration of power in a few hands has become synonymous with precariousness.
Netflix has argued that the purchase will generate "Lots of great jobs" in the technology and entertainment industry In the United States, they cited investments in new studios—such as the one in New Mexico or the one planned for a former military base in New Jersey. However, internal documents and estimates from the specialized press indicate that the group is seeking to save between $2.000 billion and $3.000 billion annually in the medium term, a figure that will be difficult to achieve without staff reductions and outsourcing.
Recent experience in Europe fuels these doubts. Between 2023 and 2024, Netflix and Disney+ halved their orders for animated series in FranceMeanwhile, international animation sales plummeted. The result was the closure or technical bankruptcy of some of the country's most influential animation studios, with thousands of writers, technicians, and animators losing their jobs or being forced to emigrate to other markets.
In Hollywood, the great writers' strike of 2023, followed by the actors' strike, was a direct response to the platform-driven model changeThe reduction in series length, the loss of revenue from reruns, and the lack of transparency in the algorithms that decide renewals and cancellations set off alarm bells. Netflix, Paramount, and HBO were among the companies singled out by workers during those months of protests.
In the European and Spanish case, the integration of Warner into Netflix could represent a even more centralized reorganization of production decisionsWith global committees prioritizing high-impact international projects over more local or risky proposals, independent producers fear that if the classic Warner and HBO catalogs are offered within the same subscription, the space for new voices will effectively shrink.
Regulation, politics, and culture at stake
The impact of the deal is also being measured in political terms. In the United States, Donald Trump himself has commented on Netflix's acquisition of Warner Bros. "It could be a problem"Meanwhile, the former president's inner circle maintains close ties with Paramount Skydance's alternative bid. Trump's son-in-law, Jared Kushner, is involved in financing the rival bid through the firm Affinity Partners.
According to various reports, David and Larry Ellison allegedly carried out a multi-week pressure campaign to secure Trump's support Paramount's proposal, with promises to "reform" CNN's editorial line—a channel the former president has repeatedly attacked—is a key factor in the dispute. The underlying issue goes beyond business: it's about who controls one of the world's largest cultural and media platforms.
In Europe, EU authorities will closely monitor the process, especially from the perspective of Audiovisual Media Services Directive and competition rulesThe European Commission will have to analyze whether the new combination of catalogs and market shares limits the entry of other operators or excessively reduces the plurality of supply in countries such as Spain, France, Italy or Germany.
Another open front is that of movie theaters. Ted Sarandos, co-CEO of Netflix, has even described theaters as "an obsolete concept"Although in recent years the company has experimented with limited theatrical releases for certain titles, if the group decides to further shorten the theatrical windows for Warner productions, European cinema chains could see fewer major releases, with a direct impact on box office revenue.
However, Netflix has attempted to send a reassuring message, stating that Warner Bros. films will continue to be released in theaters with "traditional" windows.without yet specifying exact deadlines. Part of this balancing strategy is explained by the company's interest in preserving its image as a partner of the film industry, key to continuing to participate in international festivals and awards.
On a cultural level, the platform has cultivated an image of company committed to diversity and representationBoth in its staff and its content, LGBTQ+ characters, protagonists of color, and minority-centered narratives have been a significant part of its offerings. However, critics and analysts point out that this approach is primarily part of a commercial strategy aimed at capturing global audience niches, rather than a coherent political commitment.
With the addition of the Warner and HBO catalogs, that cultural influence is amplified and opens the door to new "culture wars" If the political climate in the United States becomes even more polarized, it is possible that future administrations will attempt to influence editorial lines or certain narrative approaches, aware of the weight these series and films carry in shaping the collective imagination in Europe as well.
Netflix's purchase of Warner Bros. Discovery's studio and streaming assets puts the platform in a unprecedented dominant position In the digital entertainment business, it strengthens its presence in Europe and Spain and raises expectations about the content available to the public, but it also intensifies fears about the concentration of power, employment, cultural diversity and informational plurality in a sector increasingly controlled by a handful of global giants.
