Streamer Netflix’s acquisition of the iconic Hollywood Studio Warner Bros. Discovery (WBD) will add muscle and sinews to its content offering, but experts said locking cricket rights that will be up for grabs in 2027 might be a gamechanger on the Indian subcontinent.
Netflix has agreed to acquire WBD in a landmark deal valuing the company at an enterprise value of $82.7 billion and an equity value of $72 billion, after WBD spins off its global television networks into a new listed entity, Discovery Global, giving the streaming giant control over one of Hollywood’s most well-known studios and creating a global entertainment behemoth.
Once the spin-off is completed in the third quarter of 2026, Netflix will take over the Warner Bros. film and TV studios, along with HBO and streaming platform HBO Max. Netflix expects $2-$3 billion in annual cost savings by year three and says the deal will be accretive to GAAP earnings per share by year two. The transaction is targeted to close in 12-18 months.
The deal has also drawn comparisons with Disney’s $71 billion acquisition of 21st Century Fox in 2019, with analysts noting that while the two transactions differ in scope, the Netflix–WBD combination moves Netflix closer to the studio scale Disney reached after the Fox merger.
Analysts say it remains unclear how the deal would affect India, though some note that a larger consolidated content catalogue could shape future licensing decisions.
A few industry observers cautiously add that the strengthened portfolio may, over time, prompt Netflix to reassess broader growth opportunities in the market, including whether to evaluate cricket rights when they come up for renewal in 2027, although there is no indication that the company is considering such a move at this stage. “The Netflix-WBD acquisition is a watershed moment for global streaming and its ripple effects in India will be profound. Content consolidation will bring HBO’s prestige series and WBD’s blockbuster franchises under Netflix, reducing fragmentation and creating Netflix a premium destination for global hits. Licensing disruption is inevitable as existing deals with other platforms expire, paving the way for Netflix exclusivity. This will drive industry to recalibrate their strategies, focusing on sports rights, regional originals and ad-supported models. Competitive pressures will intensify, driving innovation in pricing, bundling and localised storytelling. hThis deal definitely accelerates India’s OTT evolution towards a more consolidated and consumer-centric ecosystem,” said PwC India partner and leader for media and entertainment Rajesh Sethi.
“This acquisition gives Netflix access to franchises it has historically lacked, reflecting a strategy similar to Disney’s past content acquisitions such as Marvel and Star Wars. The price is significant, and its impact in India may be limited because the audience for premium HBO content remains relatively narrow. In this market, meaningful scale is unlikely unless Netflix eventually pursues cricket,” said NV Capital managing partner Nitin Menon
Netflix will pay $27.75 per WBD share, including $23.25 in cash and $4.50 in stock. The sale followed a competitive process involving Paramount Skydance and Comcast.
Reuters reported that preliminary bids in November valued WBD at close to $24 per share for the full group in Paramount’s case, while Netflix and Comcast bid only for the studios and streaming assets. Netflix later raised its offer to about $28 per share for the restructured perimeter.
WBD then enters exclusive talks with Netflix. Discovery Global will house CNN, Discovery, TNT Sports, free-to-air European channels and Discovery Plus, all of which remain outsi
Read More