Netflix to buy Warner Bros. Discovery for $72B, will acquire HBO Max streaming

Netflix agreed The streaming service announced on Friday that Warner Bros. Discovery in a $72 billion deal.

Under the deal, Netflix will acquire Warner Bros.’ film and television studios and streaming platform. Discovery, HBO Max. Franchises, shows and movies such as “The Big Bang Theory,” “The Sopranos,” “Game of Thrones,” “The Wizard of Oz,” and “DC Universe” will join Netflix’s extensive lineup.

The cash and stock deal is worth $27.75 per Warner Bros. share. Discovery, valuing the stock at $72 billion. Its enterprise value — the total value of the company including debt — is $82.7 billion.

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The deal is expected to close after Warner Bros. Discovery is separating its streaming, studios and global network divisions into two separate publicly traded companies, which is now expected to be completed in the latter half of 2026.

“This acquisition will improve our offerings and accelerate our services business for decades to come“Warner Bros. has helped define entertainment for more than a century, and continues to do so through exceptional creative executives and production capabilities,” said Greg Peters, Netflix co-CEO.

A banner is placed in front of Netflix headquarters on April 20, 2022, in Los Gatos, California. (Photo by Justin Sullivan/Getty Images)

Netflix said the deal will allow it to significantly expand US production capacity and continue to grow investment in original content over the long term, which the company said will create jobs and boost the entertainment industry. Netflix also said it expects to keep Warner Bros. Current operations, which include releasing films in theaters.

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Warner Bros. CEO David Zaslav said the deal “will ensure that people everywhere continue to enjoy the world’s most resonant music.” Stories for future generations.“

The deal represents a major shift in the entertainment industry, strengthening Netflix’s position as the most powerful distribution platform. It also represents the largest merger announced this year.

A banner at the Warner Bros Discovery office in New York, US, on Saturday, February 17, 2024. (Yuki Iwamura/Bloomberg via Getty Images)

However, the deal may face regulatory challenges as some lawmakers argue that the merger would give Netflix too much control over content and distribution. Last month, after talks about a potential deal became public, Sen. Roger Marshall, R-Kan., sent a letter to the Justice Department and the Federal Trade Commission saying that a deal between the two companies would create one of the largest content mergers in the history of modern media — hurting consumers, workers and competition across the entertainment market.

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Paramount cut nearly 1,000 jobs on Wednesday. (Eric Thayer/Bloomberg via Getty Images)

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Paramount Skydance and Comcast have reportedly entered the race to acquire some or all of Warner Bros’ assets, submitting bids alongside Netflix this week.

But as talks continued, Paramount president David Ellison accused Warner of running an unfair process.

“It has become increasingly clear, through media and other reports, that WBD has abandoned the appearance and reality of a fair transaction process, and thus has abdicated its duties to shareholders,” Paramount lawyers at Quinn Emanuel wrote to the Warner chairman.