Netflix has a history of successful pivots. Its Warner Bros. Discovery deal will put that to the test.

"Previously, Netflix said it wasn't interested in big mergers and acquisitions, with execs saying the company preferred to build things itself to ensure it got exactly what it wanted. Big media M&A has a poor track record, after all. Now, co-CEO Greg Peters has said the new deal will be different because the streamer understands the business it's buying and isn't doing it out of desperation."

"If Netflix has a superpower, it's the ability to abandon long-held certainties when the market shifts. Whether cracking down on password sharing or embracing ads after years of resistance, the streamer's biggest leaps have come from rethinking nonnegotiables. "After throwing cold water on large media mergers publicly, Netflix immediately sought to buy one of the world's largest content spenders. This is similar to its reversal on advertising, live sports, and account sharing," EMARKETER Senior Analyst Ross Benes said."

Netflix announced the acquisition of Warner Bros Discovery's studios and streaming services after previously rejecting large mergers. Executives originally preferred building capabilities internally due to poor media M&A track records, but co-CEO Greg Peters framed the purchase as informed and deliberate rather than desperate. Netflix has a track record of abandoning long-held certainties — cracking down on password sharing, adding ad tiers, and pursuing live sports — to respond to market shifts. Past pivots such as transitioning from DVD-by-mail to streaming and investing in originals drove growth. The WBD deal is a larger, riskier pivot that presents new integration and scale challenges.

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