Netflix Wins Bidding War, Agrees to Buy Warner Bros. In $72B deal 12/5/25

Squawk on the Street

CNBC

Investing, News, Business

4.1 • 567 Ratings

🗓️ 5 December 2025

⏱️ 47 minutes

🔗️ Recording | iTunes | RSS

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Summary

Carl Quintanilla, David Faber, Sara Eisen and Michael Santoli covered all of the bases on a blockbuster deal: Netflix agreed to acquire Warner Bros. following the separation of Discovery Global. The cash and stock deal has an equity value of $72 billion. The bidding process also included Paramount Skydance and Comcast vying for Warner's assets. The anchors discussed the details of the deal and potential antitrust ramifications. A senior Trump Administration official told CNBC the White House's view of the Netflix-WB deal is "heavy skepticism." Also in focus: Key inflation data ahead of next week's Fed rate decision, market winners and losers, the sensation at Art Basel Miami: Robot dogs that look like Musk, Zuckerberg and Bezos. Disclosure: Comcast is the parent company of NBCUniversal, which owns CNBC. Versant would become the new parent company of CNBC upon Comcast’s planned spinoff of Versant. Squawk on the Street Disclaimer

Transcript

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0:00.0	Market Moving Insight and Analysis joined Jim Kramer, David Faber, and me, Carl Kintania, on the opening bell hour of CNBC Squawk on the Street. Good Friday morning. Welcome to Squawk on the street. I'm Carl Kintania with Sarah Eisen, Mike Santoli, a post-9 of the New York Stock Exchange. Faber is going to join us in a moment on this Netflix Warner News. Kramer has the morning off. As for the pre-market, off small today, just about half a percent off the all-time highs.
0:23.2	We do have the Blockbuster Media M&FRA. News Kramer has the morning off. As for the pre-market, off small today, just about half a percent off the all-time highs.
0:23.2	We do have the blockbuster media M&A. Also our first major inflation print since the shutdown later this morning.
0:29.9	Ten-year yield, just about the biggest weekly gain in six months. Let's begin, though, with the big news of the morning, and that is Netflix,
0:37.1	agreeing to acquire Warner Brothers following the separation of discovery. Global cash and
0:41.5	stock transaction has an equity value of $72 billion. This is what Ted Sarandos had to say
0:46.5	about it on the conference call. We can't stand still. We need to keep innovating and investing in stories that matter most to audiences.
0:57.6	And that's what this deal is all about.
1:00.8	The combination of Netflix and Warner Brothers creates a better Netflix for the long term.
1:06.3	It sets us up for success for decades to come.
1:10.1	Warner Brothers has some of the best entertainment
1:11.9	in the world, period.
1:13.1	Favor has been helping the straight understand the story all morning long and he joins
1:18.1	us on the phone with more details. David, as Netflix is poised to become one of the, maybe
1:23.2	the biggest content creator in the world.
1:25.3	Yeah, no doubt it's going to be even more of a powerhouse if they get this deal done
1:30.0	than they currently are, Carl.
1:31.7	You know, stepping back, obviously, just stunning when you consider the deal itself and
1:36.0	the price being paid at this point for a company whose stock price prior to the news of
1:43.2	Paramount's interest was, you know, in the low teens, not even, to be fair.
1:48.4	So an enormous premium being paid, and frankly, quite a multiple as well that Netflix is willing to pay.
1:55.4	It's up into the upper 20s, maybe as much as 30 times EBITDA.
	...

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