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Is it true that Netflix has bought Warner Bros.?
KAMPALA – Netflix has won exclusive rights to acquire Warner Bros. Discovery’s (WBD) studio, HBO Max, and core content assets after a brutal three-round bidding war. The deal, if approved, would merge two entertainment giants and reshape global streaming, cinema, and TV production. Below, Kampala Edge Times answers the burning questions on every viewer’s mind.
When Did the Bidding War Actually Start?
The fuse was lit in late September 2025 when Paramount Global, fresh from its $8.4 billion merger with Skydance, made an unsolicited all-cash bid of $24 per share for the entire Warner Bros. Discovery. WBD’s board rejected it as undervalued. By mid-November, the company formally launched a split-and-sell process: one “studio + streaming” bundle (Warner Bros. + HBO Max) and one “linear TV” bundle (CNN, TNT, Discovery). First-round bids arrived November 25, second-round by December 1, and the decisive third round closed December 4. Netflix’s final offer trumped Comcast and Paramount, triggering exclusive talks.
Who Sparked This Fire Sale?
David Zaslav, WBD’s embattled CEO, did. Since the 2022 Warner-Discovery merger, the company has carried $40 billion in debt, lost 70% of its market value, and faced investor revolts over canceled films (Batgirl) and 2,000+ layoffs. Shareholders demanded a breakup; Zaslav obliged, hiring JPMorgan and Goldman Sachs to run a dual-track auction. Paramount’s David Ellison fired the opening shot; Netflix’s late entry stunned the room.
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How Much Is Netflix Really Paying?
Netflix’s winning bid values the studio + HBO Max bundle at $28–$30 per share — an enterprise value of approximately $70 billion. That’s a 150% premium over WBD’s 52-week low of $7.50. The offer is mostly cash, includes a $5 billion breakup fee, and leaves WBD shareholders with a standalone “Discovery Global” entity worth ~$20 billion. Netflix stock dipped 5% on debt fears, but analysts call it a “scarcity premium” for Warner’s 100-year IP vault.
What Happens to HBO Max and Its 100 Million Subscribers?
HBO Max merges with Netflix. The combined service would launch with ~380 million global subscribers (Netflix 280M + HBO Max 100M). Expect tiered bundles: ad-free HBO prestige on premium plans, ad-supported Warner catalog on cheaper tiers. House of the Dragon, Succession, and The White Lotus stay; DC and Harry Potter reboots accelerate. Localized African originals could surge using Warner’s production muscle.
Will Regulators Actually Let This Happen?
Probably not without a fight. The FTC and DOJ are already probing streaming consolidation. Paramount’s lawyers call the deal “DOA,” citing Netflix’s 40% global market share. A bipartisan Senate letter warns of “content monopoly.” Approval timeline: mid-2026 at earliest, with possible divestitures (e.g., CNN or Turner Sports). EU and UK watchdogs will scrutinize too.
What About Theaters and Blockbusters?
Netflix has pledged to honor theatrical windows for Warner’s 2026–2027 slate (Superman, Fantastic Beasts). But long-term? Expect shorter cinema runs (21–30 days) before streaming. AMC and Regal shares fell 8% on the news. Indie filmmakers fear Netflix’s algorithm will bury mid-budget dramas in favor of IP reboots.
Who Wins, Who Loses, and What’s Next?
Winners: Netflix (IP fortress), WBD shareholders (150% premium), African viewers (more localized DC/HBO).
Losers: Paramount (outbid), theater chains, indie creators.
Next: Exclusive talks run through January 15, 2026. A formal deal could drop by Q1 2026, with integration starting 2027.
