Netflix to Acquire Warner Bros Discovery Film and Streaming Businesses in $72 Billion Deal
Netflix has agreed to buy Warner Bros Discovery's film and streaming businesses for an equity value of $72 billion, with an enterprise value of approximately $82.7 billion. The deal, structured as a cash-and-stock transaction at $27.75 per Warner Bros share, is subject to regulatory approvals.
Warner Bros owns major franchises including Harry Potter and Game of Thrones and operates the HBO Max streaming service. This acquisition will merge Netflix's original content with Warner Bros' extensive library and network assets.
Netflix emerged as the winning bidder ahead of Comcast and Paramount Skydance after a prolonged auction. The boards of both companies unanimously approved the transaction. Prior to this, Paramount had attempted to acquire Warner Bros entirely but was rejected.
The deal has faced criticism from some industry groups, including the Writers Guild of America, which urged regulators to block the merger due to concerns over potential job losses, increased prices, and reduced diversity in content.
Netflix anticipates saving $2-3 billion by eliminating overlapping support and technology functions across the combined businesses. Warner Bros films will continue to be released in cinemas, and the Warner Bros TV studio will retain the ability to produce content for third parties, while Netflix will focus on producing exclusive content for its platform.
As part of Warner Bros Discovery's restructuring, its streaming and studios division will be separated from the global networks division next year. The global networks division, renamed Discovery Global—home to properties such as CNN and TNT Sports—will not be included in the sale to Netflix; however, TNT Sports International will remain with the portion being sold.
Analysts have remarked that this is a significant strategic move that may face challenges with integration and regulatory scrutiny. There could be substantial changes in content output and implications for consumer pricing following the merger.
