It’s been a shocking time for movie fans and industry employees as major studios continue to be merged or acquired by one another. The latest studio to join the trend is none other than Warner Bros. Discovery, with bidders having included Paramount, Netflix, and Comcast. Now it looks like Netflix has officially won the bidding war for Warner Bros. and its assets.
As shared in a press release from Netflix themselves, the two “have entered into a definitive agreement under which Netflix will acquire Warner Bros, including its film and television studios, HBO Max and HBO.” It’s an announcement that is shaking the entertainment industry and moviegoers, especially considering how important of a studio Warner Bros. has been for over a century.
Here’s how the streaming giant summarized their deal:
“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.”
The thought of having so many iconic IPs under one roof is truly mind-boggling, but as Netflix’s co-CEO Ted Sarandos explains, this is part of their goal to “entertain the world.” Here’s his statement regarding the transaction and their plans for the Warner Bros. Discovery library:
“Our mission has always been to entertain the world,” Sarandos begins. “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.”
Fellow Netflix co-CEO Greg Peters further elaborated with his own statement:
“This acquisition will improve our offering and accelerate our business for decades to come,” Peters added. “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.”
Warner Bros. Discovery President and CEO David Zaslav had this to say:
“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 Zaslav. “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.”
Of course, not everything has been fully approved just yet. It’s been said that “completion of the transaction is subject to required regulatory approvals, approval of WBD shareholders and other customary closing conditions. The transaction is expected to close in 12-18 months.” As such, it will be at least a year before this deal likely goes through if fully approved.
In the meantime, however, it looks like Netflix is the winner of the tense bidding war between themselves, Paramount, and Comcast to take over Warner Bros. Discovery. It remains to be seen what this means for the entertainment industry or Warner Bros.’ operations, but the press release suggests that “Netflix expects to maintain Warner Bros.’ current operations and build on its strengths, including theatrical releases for films.”
Stay tuned to ScreenGeek for any additional updates regarding the deal between Netflix and Warner Bros. Discovery as we have them. It’s certainly going to be an interesting time in the entertainment industry going forward.