Netflix considered acquiring EA, Fox and Disney before Warner Bros bid

Netflix’s recent move to acquire Warner Bros. Discovery for $82.7 billion appears to be only one part of a much broader acquisition strategy. According to a Bloomberg, the streaming giant previously evaluated potential buyouts of Electronic Arts, 21st Century Fox, and even Disney before shifting its focus to Warner Bros.

Bloomberg’s reporting indicates that Netflix executives held internal discussions about acquiring the major video game publisher EA as well as Fox and Disney. However, leadership ultimately failed to reach consensus on any of the proposals, with concerns that overpaying for companies valued at lower market multiples could negatively impact Netflix’s stock.

Electronic Arts has since agreed to a separate $55 billion deal to go private, backed by Saudi Arabia’s Public Investment Fund, which is expected to gain a 93.4% ownership stake once the transaction is complete. Netflix has spent the last several years expanding its gaming business, making a major acquisition of this scale theoretically strategic.

Regarding Fox, its assets were purchased by Disney for $71 billion in 2018—an indication of the massive financial scope Netflix was contemplating. A successful acquisition of Disney itself, as reportedly considered, would have dramatically reshaped the entertainment landscape.

The situation surrounding Netflix’s current Warner Bros. Discovery bid continues to evolve as Paramount has submitted a competing offer valued at $108 billion. The final outcome may take years to resolve. As seen with other major media and gaming acquisitions—such as Microsoft’s purchase of Activision Blizzard, which was followed by price increases for services like Xbox Game Pass—industry consolidation does not always benefit consumers.