Netflix announced a $72 billion deal to acquire Warner Bros Discovery’s TV, film studios, and streaming division. The decision came after Warner Bros Discovery rejected offers from Paramount Skydance. Netflix recognized the value of Warner Bros’ deep catalog and complementary business units, leading to the historic deal.

The auction for Warner Bros Discovery was kicked off in October, with Paramount making escalating offers. Netflix and NBCUniversal’s parent company, Comcast, also vied for the assets. After intense negotiations, Netflix presented the winning bid, beating out Comcast. The board favored Netflix’s deal for its immediate benefits over Comcast’s proposal.

JPMorgan Chase & Co advised Warner Bros Discovery CEO to consider changing the order of the planned split to increase flexibility. The advisory team for Netflix, including banks and law firms, worked tirelessly to prepare a bid. The final offer by Netflix was considered binding and complete by the board, leading to the historic decision.

Netflix reassured Warner Bros Discovery with a $5.8 billion breakup fee, indicating confidence in winning regulatory approval. The news of Netflix’s successful bid was met with applause and cheers. The deal marks a significant milestone in the entertainment industry and is expected to reshape the global entertainment landscape.

Read more at Yahoo Finance: Exclusive-How Netflix won Hollywood’s biggest prize, Warner Bros Discovery