Netflix has reached an agreement to purchase Warner Bros. for $72 billion, marking a significant shift in the entertainment industry. Announced on Friday, the deal includes Warner Bros.’ film and television studios, HBO Max, and HBO, but excludes Warner’s cable channels like CNN, TNT, and HGTV, which will form a new company, Discovery Global, in 2026.
The acquisition will bring iconic characters such as Batman, Harry Potter, and Fred Flintstone under Netflix’s umbrella. Netflix’s co-CEO Ted Sarandos stated, “Our mission has always been to entertain the world,” emphasizing the potential of combining Warner Bros.’ extensive library with Netflix’s popular titles like ‘Stranger Things’ and ‘Squid Game.’
According to GamesRadar, the transaction is valued at $27.75 per Warner Bros. Discovery share, with Netflix also assuming over $10 billion in debt, bringing the total deal value to $82.7 billion. Netflix outbid Paramount and Comcast, who were also vying for Warner Bros. assets.
The merger raises concerns about its impact on the film industry. With Netflix’s focus on streaming, the acquisition could threaten traditional theatrical releases, prompting opposition from groups like Cinema United and the Directors Guild of America. They argue that the deal could limit competition and creativity in the industry.
Netflix plans to maintain Warner Bros.’ operations, including theatrical releases, but the future of theatrical filmmaking remains uncertain. The deal awaits regulatory approval, and Netflix has reportedly offered a $5 billion breakup fee if the acquisition fails to clear.
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