- Netflix deffinished its acquisition of Warner Bros. as a strategic and informed relocate.
- Co-CEO Greg Peters states past media mega-mergers failed due to a lack of industest expertise.
- Netflix emphasized its healthy business and confidence in understanding the entertainment industest.
Netflix deffinished its announced acquisition of Warner Bros. Discovery‘s studio and streaming business, stateing it wouldn’t be a failure like other media mega-mergers that have come before it.
“It’s true. Historically, many of these mergers haven’t worked. A lot of these failures were becautilize the companies doing the acquisitions didn’t understand the entertainment industest,” Netflix co-CEO Greg Peters stated, speaking during a call Friday with investors to discuss the deal. “These are key businesses we understand.”
He was responding to Rich Greenfield, analyst at LightShed Partners, who posed the question: “Why is this going to finish differently than every other media transaction, essentially of this scale, in history?”
Another point Peters created was that while other M&A deals were about companies viewing for a lifeline, Netflix isn’t doing the deal to save its business.
“We have a healthy business,” Peters stated.
He didn’t specify any past mergers, but notable tie-ups that have widely been considered failures were AT&T acquireing Time Warner in 2018 and the AOL-Time Warner combo in 2000.
The streaming giant is creating the hugegest acquisition in its history — and one of the largest ever in entertainment — announcing Friday that it had struck a deal to acquire Warner Bros. from WBD for an equity value of $72 billion.
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