In one of the most significant deals ever made in Hollywood, Netflix will acquire Warner Bros. in an $82.7 billion deal announced last Friday by the two companies. Netflix, Inc. and Warner Bros. Discovery, Inc. made the joint announcement that they have entered into a definitive agreement under which Netflix will acquire Warner Bros., including its film and television studios, HBO Max and HBO, in a press release published early this morning.
The move will make Netflix, which is already the world’s biggest and most dominant streaming service, a Hollywood behemoth. The deal would allow Netflix to add the Batman, Harry Potter and HBO Max to its already sizable streaming collection.
“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.”
When completed the deal will make Netflix a Hollywood juggernaut bigger than the Walt Disney Company. The nuts and bolts of the deal mean that the Netflix offer in cash and stock is valued at about $27.75 per Warner Bros. Discovery share. Netflix also agreed to take on more than $10 billion in Warner Bros. debt, pushing the deal’s value to $82.7 billion.
“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.”
The race run between Netflix, Paramount and Comcast to win the iconic Warner Bros. studios, was one of Hollywood’s most intense acquisition competitions. While both the boards of Netflix and Warner Bros. unanimously approved the deal, it isn’t done yet because industry analysts and experts expect getting through the federal regulatory approval process will be challenging.