Netflix is securing unprecedented content control through its $82.7 billion acquisition of Warner Bros. Discovery. This definitive agreement provides Netflix with ownership of massive content libraries and production facilities, eliminating vulnerability to content licensing negotiations while establishing permanent control over premium entertainment assets that drive subscriber acquisition and retention.
The acquisition establishes $27.75 per share as the price for Warner Bros. Discovery stock, resulting in total equity value of approximately $72.0 billion. The $82.7 billion enterprise value represents investment in content control rather than temporary content access. The unanimous board approvals reflect confidence that content ownership provides superior long-term value compared to licensing arrangements.
Netflix co-CEO Ted Sarandos emphasized how content control transforms Netflix’s competitive position. He described how owning rather than licensing content eliminates ongoing negotiations, unpredictable cost increases, and the risk that content providers become competitors. This merger establishes permanent content control that provides strategic flexibility and cost predictability impossible under licensing models.
David Zaslav of Warner Bros. Discovery acknowledged the strategic importance of content control. He noted that as streaming competition intensifies, content owners gain leverage over platforms that license content, making ownership increasingly valuable. The transaction positions Netflix to benefit from ownership economics while providing Warner Bros. shareholders immediate value realization rather than uncertain future licensing revenues.