Netflix, an American streaming platform, is set to acquire Warner Bros. Discovery Channel's film and television industry and streaming services, which is expected to face strict antitrust scrutiny in Europe and the United States.

American streaming giant Netflix announced that it will acquire Warner Bros. Discovery Channel's television and film studios and streaming division for nearly $83 billion (approximately SGD 107.5 billion), marking the largest integration deal in the entertainment industry in a decade.

This historic merger allows paid streaming pioneers who have disrupted the media industry to take control of companies under the long-standing Warner Bros. Discovery channel in Hollywood.

According to the agreement announced on Friday (December 5th), Warner Bros. shareholders will receive $27.75 per share in cash and Netflix stock. The total equity value of the transaction is $72 billion, and the enterprise value is approximately $82.7 billion.

After this acquisition, Netflix will have access to HBO and its popular series library. Warner Bros. 'assets also include its massive production studio located in Burbank, California, as well as a massive library of film and television archives including Harry Potter and Friends.

Netflix CEO Sarandos said in a statement, "We will work together to bring audiences more content they love and define the narrative of the next century

Analysts pointed out that Netflix is expanding its gaming business and seeking a new growth curve. This acquisition aims to lock in long-term copyrights for popular film and television content, reduce dependence on external production companies, and expand its own content library to provide support. But the acquisition transaction may face strict antitrust scrutiny in Europe and America.