Netflix has just announced a massive deal that, if it earns regulatory approval, could change the Hollywood landscape forever. Netflix is acquiring Warner Bros. in an estimated $82.7 billion deal, and will take ownership of its film and television studios, HBO Max, and HBO.
Netflix acquisition of Warner Bros. expected to close in 12-18 months
The highly publicized sale of Warner Bros. Discovery has reached a tipping point. Though Paramount Skydance and Comcast were part of the bidding war, Netflix has come out on top.
Today Netflix announced the blockbuster acquisition, which pays $27.75 per WBD share for a total enterprise value of approximately $82.7 billion. That includes equity value of $72.0 billion, plus taking on existing WBD debt.
Here are Netflix’s co-CEOs on the announcement:
“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.” “This acquisition will improve our offering and accelerate our business for decades to come,” continued Greg Peters, co-CEO of Netflix. “Warner Bros. has helped define entertainment for more than a century and continues to do so with phenomenal creative executives and production capabilities. With our global reach and proven business model, we can introduce a broader audience to the worlds they create—giving our members more options, attracting more fans to our best-in-class streaming service, strengthening the entire entertainment industry and creating more value for shareholders.”
There’s no guarantee the deal will get the necessary regulatory approvals, but if it does, Netflix expects the deal to close in 12-18 months.
Questions abound for Hollywood, Apple, and the whole streaming landscape
Any sale of the Warner Bros. library, film and TV studios, and HBO Max was going to have massive ripple effects throughout Hollywood.
But Netflix being the top bidder raises an especially huge number of questions and potential concerns.
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