Netflix Warner Bros Acquisition Faces U.S. and U.K. Scrutiny
Netflix Warner Bros acquisition drew U.S. and U.K. scrutiny, raising approval risk and likely increasing takeover volatility before an April vote.
KEY TAKEAWAYS
- A U.S. Senate antitrust subcommittee announced a hearing on the proposed Netflix Warner Bros tie-up.
- More than a dozen U.K. politicians urged the CMA to open a full competition review of the bid.
- Reported terms showed an $83.0 billion all-cash offer at $27.75 per share and about $40.0 billion debt.
HIGH POTENTIAL TRADES SENT DIRECTLY TO YOUR INBOX
Add your email to receive our free daily newsletter. No spam, unsubscribe anytime.
On Jan. 27, 2026, Netflix (NFLX) proposed acquiring Warner Bros. Discovery (WBD), prompting a U.S. Senate antitrust subcommittee hearing and calls for a U.K. Competition and Markets Authority (CMA) review. These developments raise questions about approval and timing ahead of a shareholder vote.
Deal Terms and Financial Context
The reported offer values the acquisition at $83 billion in all cash, with a per-share price of $27.75 and an enterprise value near $82.7 billion including assumed debt. Some commentary suggests the deal could focus on WBD’s core studios and direct-to-consumer (D2C) assets, valued at about $72 billion, while spinning off linear networks into a separate Discovery Global entity.
The purchase is expected to be funded with cash and roughly $40 billion in debt. Analysts project a closing in the third quarter of 2026, pending regulatory and shareholder approvals. Warner Bros. Discovery’s Q3 2025 financials show revenue of $10.8 billion, a D2C profit of $345 million, and gross debt of $35.6 billion. Shareholders are scheduled to vote by April 2026.
Regulatory Roadblocks and Timeline
The U.S. Senate Judiciary Committee’s antitrust subcommittee announced a hearing next week to examine the proposed tie-up, marking the start of a formal antitrust review. In the U.K., more than a dozen politicians and former policymakers have urged the CMA to launch a full competition review of the bid.
These regulatory actions, combined with the upcoming shareholder vote, represent the main near-term constraints on the transaction. They could delay the closing timeline and influence the structure of any required remedies. The Department of Justice may also play an oversight role in the merger review.
