According to a recent report, Netflix considered acquiring major media groups — including Disney, Electronic Arts (EA), and 21st Century Fox — before shifting focus to Warner Bros. Discovery. Hindustan Times
Executives internally debated these acquisition targets during their expansion planning. However, they concluded that buying Disney or similar companies could “hurt their stock price by overpaying for an asset” trading at a lower multiple than Warner Bros. Discovery.
Ultimately, Netflix dropped those acquisition ideas and decided to bid for Warner Bros. Discovery’s film and streaming businesses — leading to a landmark US $82.7 billion deal announced in December 2025.
📄 Why Disney (and others) were considered — and why they were passed over
🎯 Broad ambitions: media, gaming, and global content reach
Netflix’s interest in Disney, Fox, or EA made strategic sense — bundling films, animated content, games, and intellectual property into a single portfolio that could power streaming and gaming expansion. As the report notes, Netflix looked at varied assets before deciding on Warner Bros. Discovery.
💡 Financial & valuation concerns
Despite the appeal, Netflix executives reportedly believed those companies traded at lower multiples relative to their price and potential returns — making them less attractive than Warner’s asset base. This valuation logic helped them steer the strategy away from Disney/Fox/EA.
📚 Rich content libraries and clear synergies with Warner Bros. Discovery
Warner Bros. offered a compelling mix of studios, HBO/HBO Max content, DC Comics properties, games, and a broader global licensing/distribution structure — making it a better fit for Netflix’s growth goals.
What this reveals about Netflix’s strategy and the media-streaming landscape
- Netflix is thinking big: By evaluating giants like Disney and EA, it’s clear the company aims to dominate not just streaming, but global media — movies, games, IP franchises, and more.
- The final choice of Warner Bros. Discovery suggests a preference for value and synergy — not headline names. Netflix seems to prioritize long-term content depth over brand glamour.
- The decision may reshape the global content and entertainment industry — consolidating major studios under streaming platforms, which could cause ripple effects across competition, regulation, and content availability.
What to watch next
- Whether this strategy triggers further consolidation — will Netflix or rivals like Paramount Skydance, The Walt Disney Company, or other media giants attempt counter-moves or bundling to preserve share.
- Regulatory scrutiny and antitrust concerns — large-scale acquisitions blending production, distribution, and streaming may attract watchdogs globally.
- Impact on content diversity and pricing — if a few players hold vast libraries and control distribution, it might affect how consumers access movies and shows.
- How games, IP-driven franchises (DC, EA titles, etc.) factor into future media-streaming-gaming convergence strategies.
✅ Final Thought
The fact that Netflix once considered buying Disney — but ultimately opted for Warner Bros. Discovery — shows how aggressive and ambitious the streaming wars have become. In choosing Warner, Netflix bet on content depth, synergy and long-term value over brand prestige. If the deal goes through, the entertainment landscape could be set for a major transformation.
