Management Consulting

M&A Consulting Case Interview: Apple Vs. Netflix Vs. Warner Bros (W/ McKinsey and A&M Consultants)

RocketBlocks
RocketBlocks•Mar 25, 2026

Why It Matters

Apple’s bid could reshape the streaming landscape, granting it a vast content library while exposing it to antitrust scrutiny and integration challenges that could affect its broader ecosystem profitability.

Key Takeaways

  • •Assess Warner Bros.’ strategic fit within Apple’s ecosystem.
  • •Conduct standalone DCF and comparable valuation before adding synergies.
  • •Model revenue, cost, and churn synergies to set bid ceiling.
  • •Anticipate competitive pressure from Netflix and Paramount in auction.
  • •Prioritize regulatory risk as primary deal‑breaker in valuation.

Summary

The video presents a mock M&A case where Apple evaluates a potential acquisition of Warner Bros. Discovery, competing against Netflix and Paramount in a two‑round auction.

Ben outlines a three‑part framework—pre‑auction target assessment, auction dynamics, and post‑auction execution. He stresses a standalone valuation using DCF and comparable transactions, then adds revenue and cost synergies, especially subscriber growth and distribution efficiencies. Financial snapshots show flat overall revenue, declining linear TV but high margins, modest studio growth, and streaming at 6% growth with negative margins and a 3.5% monthly churn, implying 30‑40% annual churn. The target also carries roughly $40 billion net debt.

Key observations include the divergent business mix—profitable but shrinking linear TV versus fast‑growing but loss‑making streaming—and the high churn rate that threatens subscriber retention. Ben identifies regulatory approval as the biggest risk, noting that antitrust hurdles could halt the deal entirely. He also highlights talent retention costs and cultural integration as quantifiable execution risks.

For Apple, the analysis suggests a bid anchored to a valuation that reflects both the cash‑flow of existing assets and the upside of integrating Warner’s content library into its ecosystem. Competitive pressure from Netflix may force a premium, but regulatory uncertainty and debt load cap the upside. A disciplined bid range, coupled with a clear post‑deal integration plan, will be critical to securing a strategic foothold in the streaming wars.

Original Description

🎥 Here’s a consulting case interview focused on an M&A bidding strategy in the media industry.
Apple, a $4T tech giant, is considering a bid for Warner Bros Discovery - a major entertainment company with film studios, TV networks, and a growing streaming platform with 95 million subscribers. With competitors like Netflix and Paramount Skydance also in the mix, the auction is expected to be highly competitive. Apple’s corporate development team has hired your firm to determine whether to bid and if so, at what price.
Watch Rob Reiling (ex-McKinsey Engagement Manager) run Ben Wilson (Alvarez & Marsal, ex-EY, Darden MBA) through this M&A consulting case interview.
🎬 Video Sections:
00:00 Start
00:03 About the case
00:41 Case question
02:08 Clarifying questions
04:47 Framework
09:48 Interviewer feedback
10:16 Chart analysis
17:20 Interviewer feedback
17:49 Quantitative
26:27 Interviewer feedback
26:51 Brainstorm I
35:17 Interviewer feedback
35:41 Brainstorm II
39:05 Interviewer feedback
39:25 Recommendation
40:46 Interviewer feedback
40:51 Conclusion
🚀 Prepping for case interviews? RocketBlocks has the best concepts, drills, and coaching to get you more consulting offers: https://www.rocketblocks.me/consulting.php?utm_source=youtube&utm_medium=video&utm_campaign=StreamingWars-yt-mock
📝 Try this case on your own and read through sample answers with the full PDF:
#consultinginterviews #BCG #McKinsey #netflix #streaming #apple #paramount

Comments

Want to join the conversation?

Loading comments...