In a major story that could have major ramifications for AEW, Netflix has officially won the bidding war for Warner Bros. Discovery (WBD), submitting the winning offer to acquire key assets of the media giant. According to a report by Deadline, Netflix offered approximately $28 per share, primarily in cash, to secure the deal. This development concludes a volatile auction process that saw WBD place itself on the block in October following multiple offers from Paramount.
The acquisition is poised to reshape the entertainment industry. Deadline sources indicate that Netflix will enter exclusive talks to finalize the transaction, aiming to close the deal by mid-to-late December. The agreement reportedly includes a $5 billion breakup fee payable by Netflix should the deal fail to close.
While Paramount argued that a Netflix acquisition would face significant antitrust hurdles due to Netflix’s dominance in the streaming sector, WBD has moved forward with the streaming giant.
The Structure of the Deal: A Split Company
The specifics of the acquisition structure present complex implications for the television landscape. According to the reported terms, Netflix is set to acquire the “crown jewels” of the WBD portfolio. This includes Warner Bros. Studios, the Motion Picture Group, DC Studios, and the HBO and HBO Max streaming assets. This move provides Netflix with a deep library of intellectual property, including Harry Potter, DC Comics, and Game of Thrones, filling a gap in their portfolio regarding franchise control.
However, the deal structure indicates a separation of assets. The “Global Networks” division—which includes CNN, Discovery networks, and most notably, TNT Sports—would likely not transfer to Netflix. Instead, these linear assets are expected to form a standalone linear television company, potentially named “Discovery Global,” run by current WBD CFO Gunnar Wiedenfels.
Implications for All Elite Wrestling (AEW)
The fracturing of Warner Bros. Discovery creates a precarious situation for All Elite Wrestling, which currently airs its primary programming, Dynamite and Collision, on TBS and TNT.
The Death of the “AEW on Max” Strategy
For years, industry analysts and fans have speculated that AEW’s next media rights deal would heavily involve a streaming component on HBO Max. With Netflix acquiring HBO Max and its subscriber base, this avenue is effectively closed. Netflix already holds the exclusive rights to WWE Raw starting in January 2025 and is the international home for all WWE content. It is highly improbable that Netflix would host or pay rights fees for a direct competitor to their massive WWE investment.
The Stability of the Linear Partner
AEW’s broadcast home, the TNT and TBS networks, will seemingly remain part of the spun-off linear company, Discovery Global. While this allows AEW to remain on television, the financial stability of a standalone linear company is vastly different from that of a conglomerate like the original WBD. Without the revenue engines of the Warner Bros. film studio or the growth potential of the Max streaming service to subsidize costs, the new linear entity may face stricter budget constraints regarding sports rights fees.
The Platform Lockout: WWE’s Media Dominance
If the new linear entity decides to cut costs or if AEW seeks a new partner upon the expiration of their current contract, the available marketplace has shrunk significantly. WWE has strategically secured real estate on nearly every major distribution platform in the United States, effectively blocking AEW from the most lucrative alternatives.
Current WWE Domestic Distribution:
- Netflix: The exclusive home of Monday Night Raw and a global hub for WWE content.
- NBCUniversal (USA Network/Peacock): The home of SmackDown and the exclusive domestic host of WWE Premium Live Events (PLEs) and the WWE Network library.
- The CW: The broadcast home of NXT.
- Tubi (Fox): WWE (Evolve) maintains a presence on this free ad-supported streaming television (FAST) platform owned by Fox.
- ESPN: WWE PLE’s air here every month.
Additionally, TNA Wrestling (a WWE partner promotion) has secured a broadcast home on AMC, premiering in January.
The Lack of Alternatives
With Netflix, NBCU, Fox (via Tubi/past relationships), and The CW occupied by WWE, and AMC occupied by TNA, AEW’s options for a major media partner are limited.
- Amazon Prime Video: Remains a potential suitor, though they have focused heavily on NBA and NFL rights.
- Paramount: Having lost the bid for WBD, Paramount remains a player, but their own financial future is uncertain as they sought to merge with WBD themselves.
- Apple TV+: Has historically shown little interest in professional wrestling content.
Antitrust and Management Conflicts
The deal is not yet finalized and faces potential regulatory challenges. Paramount has already signaled it may contest the sale, arguing that the process was tainted by management conflicts regarding post-transaction roles for CEO David Zaslav. Paramount asserted that Netflix would face “major antitrust hurdles” by adding HBO Max to its existing dominance.
If the deal passes regulatory scrutiny, the landscape of professional wrestling media rights will be fundamentally altered. WWE will be anchored to the world’s largest streamer (Netflix) and a major broadcast network (NBCU/USA), while AEW may find itself tethered to a shrinking linear-only cable entity with limited streaming upside.
