In a memo to Warner Bros. staff, Zaslav said the sale “reflects the realities of an industry undergoing generational change — in how stories are financed, produced, distributed, and discovered.”
“The proposed combination of Warner Bros. and Netflix reflects complementary strengths, more choice and value for consumers, a stronger entertainment industry, increased opportunity for creative talent, and long-term value creation for shareholders,” he wrote. Elements of Warner Bros. Discovery outside the deal, including the cable news channels CNN, TNT Sports and Discovery, will be part of a new stand-alone company called Discovery Global, Zaslav said, which he expected to be squared away by the third quarter of 2026.
The deal would require shareholder approval and regulatory approval from President Donald Trump’s administration. In its regulatory filing disclosing the terms of the deal, Netflix offered a $5.8 billion breakup fee should the deal fall apart as a result of antitrust or other legal challenges. The Justice Department did not respond to a request for comment about whether it would challenge the deal.
“Given what is happening in entertainment markets, the DOJ is very likely to take a close look,” said Diana Moss, director of competition policy at the Progressive Policy Institute, a center-left-leaning think tank. “There could be concerns over eliminating head-to-head competition and potential competition.”