Netflix’s Acquisition Bid for Warner Bros. Discovery
Netflix is proposing an $82.7 billion cash acquisition of Warner Bros. Discovery, targeting its streaming arm and studios, while excluding its cable television business. This potential deal comes as Warner Bros’ streaming unit is projected to generate $22 billion in revenue for fiscal 2025, with an estimated EBITDA of $3 billion.
The acquisition aims to bolster Netflix’s already profitable operations, which reported $45 billion in revenue for 2025 and have a market capitalization of nearly $350 billion. Analysts have mixed feelings due to the high cost of the deal, but the strategic advantages could enhance Netflix’s competitive position in the growing streaming market, which is expected to see annual growth rates of 11% through 2031.
Despite concerns, several analysts maintain a strong buy rating for Netflix, projecting a consensus price target of $113.42, reflecting over 30% potential upside from its current stock price.
