Netflix has confirmed a landmark agreement to purchase the film and streaming divisions of Warner Bros Discovery for seventy two billion dollars, a move that marks one of the most significant shake ups in the modern entertainment landscape. Netflix secured the deal after beating major competitors including Comcast and Paramount Skydance in what industry insiders described as an intense and lengthy bidding contest.
Warner Bros is home to globally admired franchises such as Harry Potter and Game of Thrones, along with its popular streaming service HBO Max. The acquisition positions Netflix as a dominant force in both studio filmmaking and digital streaming. Analysts believe the purchase could reshape the United States entertainment sector, although they caution that the transaction still requires approval from competition regulators.
Streaming Giant Netflix Nears $72bn Purchase of Warner Bros Entertainment
Netflix co chief executive Ted Sarandos expressed strong confidence in obtaining the necessary regulatory clearance. He said the company is moving forward at full speed and emphasized that combining the vast Warner Bros library with Netflix originals like Stranger Things would strengthen the platform’s mission to offer unmatched storytelling to viewers everywhere. Sarandos noted that Warner Bros shaped a century of global entertainment and that Netflix aims to help shape the century ahead.
When asked whether HBO would continue as a standalone service, co chief executive Greg Peters acknowledged the value of the HBO brand but indicated it was too early to share detailed plans for future consumer offerings. Netflix estimates that the merger will create between two and three billion dollars in savings, mostly through streamlining technology and support operations.
The company confirmed that Warner Bros films will continue to debut in cinemas and that the Warner Bros television studio will remain free to produce projects for outside companies. Netflix, meanwhile, will maintain its strategy of creating content specifically for its global platform. Sarandos said the acquisition may have caught some shareholders off guard but insisted it provides a rare opportunity that will secure Netflix leadership for decades.
David Zaslav, head of Warner Bros Discovery, described the agreement as a union of two giants known for outstanding storytelling. He said that by aligning with Netflix, Warner Bros would ensure its stories continue reaching audiences around the world for future generations.
Warner Bros Film and Streaming Divisions to Be Purchased by Netflix
The deal values Warner Bros shares at twenty seven dollars and seventy five cents each, with the overall enterprise value estimated at more than eighty two billion dollars. Both companies’ boards approved the sale unanimously. For Netflix, the acquisition will significantly expand studio production capabilities and allow for greater investment in original programming.
Netflix plans to finalize the purchase once Warner Bros completes its previously announced restructuring, which will separate its streaming and studios division from its global networks division. The networks division includes CNN, sports outlets and free to air channels across Europe.
Industry experts have offered mixed reactions. Paolo Pescatore of PP Foresight called the agreement a bold demonstration of Netflix ambition to dominate global streaming, though he warned that integrating a company of Warner Bros size may present serious challenges. Other analysts predict regulatory scrutiny due to the scale of the merger. They also warn that the combined company could reduce overall film and television output and potentially raise subscription prices for consumers as Netflix becomes an even more dominant entertainment provider.
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Source: BBC
