A Sold Sticker on the “For Sale” Sign
It’s been a heated war in the battle for the Hollywood legacy studio, Warner Bros. David Zaslav separated his Discovery Global, denied Paramount’s multiple bids and crowned Netflix to be the winner. Today, Netflix Inc. and Warner Bros. Discovery Inc. have officially announced that both parties have come to a definitive agreement in the acquisition of the famous film company, which includes HBO Max and HBO. The transaction brings together Warners’ iconic properties and storied libraries with Netflix’s leading entertainment service, which creates an extraordinary offering of content for consumers.
An Official Word from the Companies
Beloved franchises, including TV shows and movies such as The Big Bang Theory, The Sopranos, Game of Thrones, The Wizard of Oz and the DC Universe, are set to join Netflix’s extensive portfolio, which includes titles like Wednesday, Money Heist, Bridgerton, Adolescence and Extraction. Many of HBO’s shows have already crossed over to availability on Netflix.
According to the press release,
The cash and stock transaction is valued at $27.75 per WBD share (subject to a collar as detailed below), with a total enterprise value of approximately $82.7 billion (equity value of $72.0 billion). The transaction is expected to close after the previously announced separation of WBD’s Global Networks division, Discovery Global, into a new publicly-traded company, which is now expected to be completed in Q3 2026.
Co-CEO of Netflix, Ted Sarandos, has made a statement that said, “Our mission has always been to entertain the world. 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.”
Greg Peters, co-CEO of Netflix, would also state, “This acquisition will improve our offering and accelerate our business for decades to come. 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.”
The President and CEO of Warner Bros. Discovery, David Zaslav, added, “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. 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.”
What do you think?
The plane of cinema is certainly going to change in light of these events. Movie fans wait with nervous anticipation as to what the future will hold. Many have been dreading the outcome of this sale in fear of what whichever victor decides to do with the legacy properties and the means of distribution. What do you make of this whole situation? What do you think it means for movie theaters and physical media as the face of the streaming revolution gains control of one of the most classic film studios in Hollywood?
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Source:
Netflix, Warner Bros. Discovery
