Netflix to Acquire Warner Bros and HBO Assets in $82.7 Billion Deal, Marking Major Consolidation
Netflix is set to acquire Warner Bros and HBO assets from Warner Bros Discovery in an $82.7 billion deal, signaling a major consolidation in the entertainment industry. This deal follows Warner Bros Discovery's 2021 merger of Discovery with WarnerMedia; the acquisition comes after 55 months from the announcement and 44 months from the closing of that merger.
The combined asset package will include Warner Bros film and HBO programming, becoming part of Netflix's expanded content slate. Warner Bros Discovery has struggled since the merger to strengthen its balance sheet and faces ongoing questions regarding resource allocation and platform strategy.
CEO David Zaslav's tenure has been marked by cost-cutting measures, weak box-office returns, and declining stock performance. Notably, Barbie has been cited as a rare success among Warner Bros releases since the merger, highlighting a mixed performance across the portfolio. Despite challenges, Zaslav earned $51.9 million in total pay last year, ranking him among the best-paid executives in corporate America.
The press release accompanying the deal from Netflix and Warner Bros Discovery promises that this transaction will bring more choice, opportunities, and value for Hollywood, investors, and viewers alike.
