In a move set to reshape the global media landscape, streaming titan Netflix has announced a staggering $82.7 billion (£62bn) deal to acquire key assets from Warner Bros Discovery, including the legendary Warner Bros film studio and the premium cable channel HBO.
A Deal Born from Struggle
This seismic transaction comes less than five years after Warner Bros Discovery's own formation, a merger that has largely failed to deliver on its grand promises. The combined entity was the brainchild of CEO David Zaslav, a well-connected executive who rose through NBC before transforming Discovery into a reality TV powerhouse.
In 2021, Zaslav engineered the mega-merger between Discovery, home to shows like 90 Day Fiancé, and WarnerMedia, the prestigious parent of HBO, CNN, and the iconic Warner Bros studio. At the time, Zaslav declared the union would unlock immense value, promising "everyone wins" – from Hollywood creators and Wall Street investors to fans worldwide.
Promises Unfulfilled and Mounting Losses
Now, 44 months after the merger was sealed, that victory feels hollow for many. Hollywood operators, promised more resources, faced relentless cost-cutting. Shareholders, assured of a strong, growth-oriented company, watched the stock price plummet. Fans were left navigating a rebranded streaming service that struggled for identity.
While Barbie provided a major box office hit for Warner Bros, it was in development long before Discovery's involvement. The post-merger slate has otherwise been described as distinctly mixed. Throughout this period, Zaslav remained one of America's highest-paid CEOs, with a total compensation package worth $51.9 million last year alone.
Netflix's Ironic Revenge
The proposed Netflix takeover marks the latest chapter in Warner Bros's long history of corporate deal-making, having previously been paired with Time Inc, AOL, and AT&T. The irony is palpable. In 2010, then-Time Warner CEO Jeff Bewkes notoriously dismissed Netflix's threat, comparing it to the Albanian army taking over the world.
Today, that 'army' is not just at the gates but preparing to assume command. The press release for the new deal echoes familiar refrains, promising "more choice, more opportunities, more value." The entertainment world now waits to see if this colossal deal, following a string of disappointments, will finally be the one that works for the storied Hollywood giant.
