Daijiworld Media Network – Los Angeles
Los Angeles, Dec 6: In a landmark Hollywood deal, Netflix has agreed to buy the film and streaming businesses of Warner Bros Discovery for $72 billion (£54 billion), setting the stage for a new era in global entertainment.
The streaming giant emerged as the successful bidder ahead of rivals Comcast and Paramount Skydance, finalising a drawn-out battle for the coveted studio that owns iconic franchises including Harry Potter and Game of Thrones, as well as the streaming service HBO Max.
Netflix co-CEO Ted Sarandos expressed confidence that the deal will secure regulatory approval and said combining Warner Bros’ storied library with Netflix originals like Stranger Things would “give audiences more of what they love and help define the next century of storytelling.” Co-CEO Greg Peters added that the HBO brand remains important to consumers, though details on integration are still being planned.
The cash-and-stock deal values Warner Bros shares at $27.75 each, with a total enterprise value of $82.7 billion. The boards of both companies have unanimously approved the transaction, which will take effect after Warner Bros completes its planned split of its streaming and studios division from its global networks business next year.
Netflix anticipates $2–3 billion in cost savings, primarily by eliminating overlaps in support and technology functions. Warner Bros films will continue to release in cinemas, and the television studio will retain the ability to produce content for third parties, while exclusive content will continue for Netflix.
Warner Bros CEO David Zaslav described the merger as a union of “two of the greatest storytelling companies in the world,” while Sarandos called it a “rare opportunity” to secure long-term success for Netflix.
However, the deal has sparked criticism within the film industry. The Writers Guild of America warned that the merger could eliminate jobs, lower wages, and reduce content diversity, while Cinema United’s CEO Michael O’Leary cautioned that the acquisition poses an “unprecedented threat” to cinemas globally.
Analysts have noted that while the deal strengthens Netflix’s position in the streaming landscape, combining two major companies of this scale could present integration challenges.
Industry observers also highlighted potential impacts on television and film output, pricing for consumers, and Hollywood unions.
Netflix’s acquisition of Warner Bros is poised to reshape Hollywood and the global entertainment market, pending regulatory approval, and represents a bold move in the rapidly evolving world of streaming.