The highly anticipated bidding battle has concluded, and Netflix has emerged victorious.
After initial discussions with Paramount Skydance and Comcast, Warner Bros. Discovery (WBD) has opted to sell its streaming and movie studios business to Netflix. Once approved, this groundbreaking deal is expected to reshape the media industry, creating long-lasting effects in Hollywood.
$72 Billion Acquisition
Netflix intends to pay $72 billion in equity value, equating to a total enterprise value of approximately $82.7 billion for Warner Bros. According to NBC News, WBD's total market value stands at $60 billion.
The acquisition will occur following WBD's completion of its division of streaming and studio assets, encompassing its film and TV libraries, the HBO channel, and additional TV networks like CNN and TBS, into two separate entities: Warner Bros. and Discovery Global. WBD anticipates finishing this division by Q3 2026.
The acquisition by Netflix remains contingent upon regulatory clearances, WBD shareholder approval, and other standard closing conditions.
According to a company announcement, Netflix forecasts this purchase will enhance its subscriber base, increase viewer engagement, and realize annual cost savings of $2â3 billion by the third year.
Netflix Co-CEO's Statement
Co-CEO Greg Peters stated that Netflix plans to utilize its expansive reach and unique business model to make Warner Bros. content available to a more extensive audience.
The announcement did not clarify the future of current WBD employees, including the current president and CEO, David Zaslav. However, Gunnar Wiedenfels, WBDâs present CFO, is projected to lead Discovery Global post-split as its CEO.
Netflix to Own HBO Max
Netflix will face regulatory challenges to finalize this deal, which would extend its reach from a dominating streaming platform to a formidable entertainment entity. If successful, Netflixâthe worldâs largest streaming service boasting 301.63 million subscribers as of Januaryâwould acquire its third-largest competitor. WBD currently has 128 million streaming subscribers, mainly from HBO Max users.