American streaming platform operator Netflix has agreed to acquire part of Warner Bros. Discovery for $72 billion. The company announced this today in a press release. Under the agreement, Netflix will acquire Warner Bros. film studios and its streaming division, including rival platform HBO Max.
Netflix buys Warner Bros. Discovery
The agreed price per share is $27.75, representing a premium over the $24.54 at which Warner Bros. Discovery shares closed trading on Thursday, as well as over a competing offer from Paramount. Paramount offered $24 per share to acquire the entire group. The transaction has been unanimously approved by the boards of directors of both companies, Netflix added. In addition to completing the planned spin-off of the acquired assets into a separate company, the completion of the transaction is also subject to approval by the relevant regulatory authorities and the Warner Bros. Discovery shareholders’ meeting.
The company estimates that the transaction will be completed within 12 to 18 months. “Our mission is 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 culturally significant titles like Stranger Things, KPop Demon Hunters, and Squid Game, we will be able to do even better,” said Netflix co-CEO Ted Sarandos.
Netflix aims high: Acquisition will bring Warner Bros., HBO Max, and iconic franchises
Warner Bros. Discovery announced in June that it will split into two separate publicly traded companies by the middle of next year. The studios and streaming services will form one company, while the cable television networks will be in the other. If the acquisition is completed, Netflix would acquire Warner Bros. studio, along with the rights to a number of film stories and characters, including the Harry Potter, DC Comics, and The Big Bang Theory franchises, in addition to its competitor HBO Max.
The studio produces a number of titles streamed on Netflix, such as the series Running Point and You. Warner Bros. Discovery was formed in 2022 through the merger of WarnerMedia and Discovery. In addition to the famous film studio and HBO Max platform, the group’s portfolio also includes HBO movie channels, Animal Planet, and CNN news television.
Source: Reuters
