Streaming giant Netflix is buying another industry behemoth, Warner Bros, including its film and television studios, HBO Max and HBO. The deal has been announced and is valued at $72 billion.
In the bidding process for Warner Bros, Netflix outpaced rivals Comcast and Paramount Skydance.
The Netflix takeover of Warner Bros will reshape the streaming world not just in the US, where these firms are based, but also worldwide. The deal, however, may face strong anti-trust scrutiny in Europe and the US.
“Today, Netflix, Inc. (the Company) and Warner Bros. Discovery, Inc. (WBD) announced they have entered into a definitive agreement under which Netflix will acquire Warner Bros., including its film and television studios, HBO Max and HBO. The cash and stock transaction is valued at $27.75 per WBD share, with a total enterprise value of approximately $82.7 billion (equity value of $72.0 billion),” the streaming giant said in a statement.
“This acquisition brings together two pioneering entertainment businesses, combining Netflix’s innovation, global reach and best-in-class streaming service with Warner Bros.’ century-long legacy of world-class storytelling,” it added.
Entertainment lovers could look forward to watching hit franchises, shows and movies like The Big Bang Theory, The Sopranos, Game of Thrones, The Wizard of Oz and the DC Universe on Netflix when the deal completes.
Timeless classics like Casablanca and Citizen Kane as well as modern favourites like Harry Potter and Friends will also move to Netflix, which already boasts of global hits like Stranger Things, KPop Demon Hunters and Squid Game.
“Our mission has always been to entertain the world,” said Ted Sarandos, co-CEO of Netflix. “This acquisition will improve our offering and accelerate our business for decades to come,” added Greg Peters, co-CEO of Netflix.
“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.