Netflix has announced a deal to purchase Warner Bros. Discovery for $82.7B.
After multiple rounds of bidding by Paramount, Comcast, and Netflix, the king of the streaming services has emerged victorious. Netflix will acquire Warner Bros., which will include its film and television studios, HBO Max, and HBO.
The global networks division will spin off into a new publicly-traded company, with a target set for Q3 2026. This will include properties such as the Discovery Channel, Food Network, and more.
“Our mission has always been to entertain the world,” said Ted Sarandos, co-CEO of Netflix. “By combining Warner Bros.’ incredible library of shows and movies—from timeless classics like Casablanca and Citizen Kane to modern favorites like Harry Potter and Friends—with our culture-defining titles like Stranger Things, KPop Demon Hunters and Squid Game, we’ll be able to do that even better. Together, we can give audiences more of what they love and help define the next century of storytelling.”
Greg Peters, co-CEO of Netflix, added, “Warner Bros. has helped define entertainment for more than a century and continues to do so with phenomenal creative executives and production capabilities. With our global reach and proven business model, we can introduce a broader audience to the worlds they create—giving our members more options, attracting more fans to our best-in-class streaming service, strengthening the entire entertainment industry and creating more value for shareholders.”
“Today’s announcement combines two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most,” said David Zaslav, President and CEO of Warner Bros. Discovery. “For more than a century, Warner Bros. has thrilled audiences, captured the world’s attention, and shaped our culture. By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come.”
One of the biggest concerns will be the number of regulatory hurdles to the deal. Netflix has famously eschewed theatrical releases except for rare occasions, so understandably this potential merger is making theater owners and the various trade guilds nervous. Sarandos has pledged to continue Warner Bros. films to theaters.
This merger has a long road ahead of it, so don’t expect to see any changes in the immediate future.
IMAGE SOURCE: Shutterstock – Warner Bros Water Tower – Oscity
