A new report confirms that Netflix leadership seriously considered acquiring The Walt Disney Company. This was part of Netflix’s aggressive push to dominate global entertainment and secure massive intellectual property (IP). The revelation frames Netflix’s current focus on purchasing Warner Bros. Discovery (WBD) as the smaller, safer alternative.
Why the Deal Never Happened
The ambition to acquire Disney ultimately failed due to massive cost barriers. Disney’s market capitalization typically ranges up to $200 billion. This required financing far beyond what Netflix was willing to commit. For context, Netflix’s agreement to buy WBD’s studio and streaming assets was valued at approximately $82.7 billion. Executives ultimately worried they might “hurt their stock price by overpaying” for such a costly asset.
The obstacles were not just financial. Acquiring Disney meant dealing with complex, non-streaming assets. These include theme parks, cruise ships, and consumer products divisions, which operate vastly differently from Netflix’s core business model. Furthermore, Netflix leadership was reportedly not unified on the idea, fearing the enormous cultural and operational integration challenges required to combine the two giants.
Current Acquisition Drama
The size of a combined Netflix/Disney entity would also have guaranteed intense regulatory scrutiny. Controlling popular IP like Marvel, Star Wars, and Pixar would have raised significant antitrust concerns. Besides Disney, Netflix also considered acquiring other major companies, including Fox and video game publisher Electronic Arts (EA).
Netflix eventually settled on WBD as the best alternative. Executives viewed the deal as a better balance of value and risk. WBD offers a deep IP library (HBO, DC Universe) at a more manageable price point. Despite letting the Disney idea die, Netflix is still in a high-stakes acquisition battle for WBD. Paramount Skydance has crashed the party with a competing, higher bid for the entire company.
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