--- title: "Netflix spent 72 billion not on Harry Potter, but to 'buy out' the last competitor that could kill it." type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/36958993.md" description: "【Hollywood's Final Battle: Why $Netflix(NFLX.US) Must Swallow Warner Bros.?】Netflix acquired Warner Bros. Discovery ($Warner Bros. Discovery(WBD.US)) for $72 billion. The company that once defeated Blockbuster will now own Harry Potter, Batman, HBO, and over a century of Hollywood's top assets. Everyone thought this deal was just about acquiring strong IPs, but in reality, Netflix is eliminating its last major competitive threat..." datetime: "2025-12-06T04:59:32.000Z" locales: - [en](https://longbridge.com/en/topics/36958993.md) - [zh-CN](https://longbridge.com/zh-CN/topics/36958993.md) - [zh-HK](https://longbridge.com/zh-HK/topics/36958993.md) author: "[投資從零開始 (Andy)](https://longbridge.com/en/profiles/12189443.md)" --- # Netflix spent 72 billion not on Harry Potter, but to 'buy out' the last competitor that could kill it. 【Hollywood's Final Battle: Why $Netflix(NFLX.US) Must Swallow Warner Bros.?】 Netflix's $72 billion acquisition of Warner Bros. Discovery ($Warner Bros. Discovery(WBD.US)), the company that once killed Blockbuster, will now own "Harry Potter," Batman, HBO, and over a century of Hollywood's top assets. Everyone thought this deal was just about acquiring strong IPs, but in reality, Netflix is eliminating its last major competitive threat. ### 1\. The Key Piece to Remove the "Netflix Killer" Warner Bros. Discovery is the only remaining independent company with large-scale content production capabilities. If this piece falls into someone else's hands, the consequences would be dire: > If Paramount acquires WBD: Combining Paramount+ and HBO Max would instantly create a giant to compete head-on with Netflix. > > If Comcast (NBCUniversal) acquires WBD: It would create a "true Disney-level" competitor with full vertical integration in theme parks, theaters, and streaming. > > Netflix's acquisition is like defusing this ticking time bomb. It would rather spend the money than watch someone else assemble these assets into a super competitor. ### 2\. The Art of Calculated Acquisition: Buying Only the Meat, Not the Bones > Netflix's shrewdness is evident in its pricing structure. > > Paramount's offer: $27 per share, but to acquire the "entire" WBD (including declining assets). > > Netflix's offer: $30 per share, a premium acquisition, but only taking the studios and streaming assets. Netflix left the declining traditional cable TV channels outside, avoiding about $15 billion in traditional business liabilities, and only took the core assets with real future value. This makes it the only buyer with a balance sheet strong enough to absorb WBD's issues—Netflix's net debt is only $6 billion, while WBD's debt alone is as high as $40 billion. ### 3\. The Irony of History: From Hunter to Prey How did the story come to this? It's a tale of Hollywood's blood and tears in mergers and acquisitions: > 2011–2018: Comcast and AT&T launched massive acquisitions, with telecom and media giants trying to control content. > > 2020–2021: Warner tried to "become" Netflix. It released "Dune" and "The Matrix 4" simultaneously on streaming, sacrificing box office revenue to boost subscriptions. > > 2022: The awakening. The newly formed Warner Bros. Discovery was burdened with $50 billion in debt, seemingly doomed from birth. > > 2025: The prophecy fulfilled. Warner wanted to become Netflix, but now it's part of Netflix. ### 4\. The Regulatory Game: Victory for Vertical Integration > The U.S. Department of Justice typically blocks "horizontal mergers" (like Paramount buying WBD, which would merge two major studios), but Netflix's move is a "vertical integration"—buying upstream from distribution to production. > > Netflix's solution is clever: It promises to license content to other platforms for the next 5–7 years. This costs almost nothing initially but secures a pass. When the commitment period ends, full control of the IP will return to Netflix. ### 5\. Second-Order Effects: The "Great Filter" of the Streaming Market > Once this deal is completed, the market will be left with only Netflix and Disney as the two kings with ultra-large-scale proprietary IPs. Others like Paramount+, Peacock, and Apple TV+ will instantly become "second-tier players." In Hollywood, the final outcome is mutual devouring, and Netflix just swallowed the juiciest piece. The only question now is: Did Netflix spend $20 billion to buy a future, or just pay $5 billion in breakup fees, watching helplessly as Paramount builds that "super competitor"? This high-stakes gamble will determine who will be the media emperor of the next decade. # If this article brings you value, please like and share. Thank you for your support! Investing from Scratch (Andy) Daily market insights to keep you company on your investment journey. 🏆 Achievements (Hong Kong's only): - Over 50,000 followers and supporters on social media - Full-time trader with 100% real-time replicable positions - 10+ investment competition podium finishes (including global and Hong Kong events) 1. Single-month returns as high as +1100% 2. Highly praised by professional financial analysts 3. Involved in Hong Kong stocks, U.S. stocks, warrants, and ETFs 4. Five-day returns as high as +453% 5. Author of the foreword to a famous investment book 6. Former guest on financial programs, active on major social platforms ### Related Stocks - [WBD.US](https://longbridge.com/en/quote/WBD.US.md) - [NFLX.US](https://longbridge.com/en/quote/NFLX.US.md) - [DIS.US](https://longbridge.com/en/quote/DIS.US.md)