In what is a major move within the entertainment industry, Netflix is acquiring Warner Bros. This deal will not only see Netflix obtaining the Warner Bros. library but also the HBO catalog and HBO Max.
Key Takeaways
- Netflix is acquiring Warner Bros., including HBO and HBO Max, in an $83 billion deal that’s expected to close in the next 18 months.
- In addition to HBO and HBO Max, the purchase covers Warner Bros. Television, Motion Pictures, DC Studios, Gaming.
- Netflix plans to keep Warner Bros.’ operations intact while leveraging its global reach to broaden audiences and strengthen its streaming power.
Netflix and Warner Bros. Discovery confirmed they have now entered into a definitive agreement with the total value of the deal coming in at just under $83 billion.
According to the two companies, the transaction is expected to take between 12 and 18 months to complete.
Earlier this year, Warner Bros. Discovery confirmed plans to separate into two different companies – Streaming & Studios and Global Networks.
That separation is still going ahead as planned and is expected to complete in the third quarter of next year.
Once the separation is complete, the Streaming & Studios business will operate as Warner Bros. and the Global Networks business will operate as Discovery Global.
It is this new Warner Bros. business that Netflix is now acquiring. Which means Netflix is also acquiring Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, and Warner Bros. Gaming Studios. This is all in addition to HBO and the HBO Max streaming service.
“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.”
Netflix says the plan is to maintain Warner Bros.’ current operations, including theatrical releases for films, while offering consumers greater choice and value.
“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.”
From Warner Bros. Discovery’s perspective, the deal is being advertised as a way to ensure the Warner Bros. library remains available for years to come.
“Today’s announcement combines two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most,” said David Zaslav, President and CEO of Warner Bros. Discovery. “For more than a century, Warner Bros. has thrilled audiences, captured the world’s attention, and shaped our culture. By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come.”
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