Netflix has just signed a historic move that shakes Hollywood to its core: acquiring the principal assets of Warner Bros. Discovery for $72 billion.
The company confirmed on Friday that it has reached an agreement to acquire the Warner Bros. film studio and the HBO Max streaming service, in a transaction valued at $72 billion in equity — $82.7 billion including debt — bringing an end to an intense bidding process that also saw Paramount Skydance and Comcast competing for the legacy assets. The deal, structured in cash and stock at $27.75 per WBD share, includes a payment of $23.25 in cash plus $4.50 in Netflix stock per share.
The closing is expected within 12 to 18 months, once the spin-off of Warner Bros. Discovery’s linear TV networks is completed, with assets such as TNT and CNN remaining under a new independent structure.
The acquisition unites the global streaming giant with one of Hollywood’s most iconic catalogues, including franchises such as ‘Harry Potter’, the DC Comics universe, and classics like ‘The Wizard of Oz’, as well as landmark series from HBO Max including ‘The Sopranos’ and ‘Game of Thrones’.
“For years we’ve been builders, not buyers, but this is a unique opportunity to accelerate our mission to entertain the world,” co-chief executive Ted Sarandos told investors.
The operation, approved by the boards of both companies, will now face regulatory scrutiny as Netflix strengthens its increasingly dominant position within the global audiovisual landscape.
