Netflix to Buy Warner Bros. Discovery’s Studios in $72 Bn Deal

Netflix on Friday agreed to acquire Warner Broas Discovery’s TV, film studios and streaming division for $72 billion, according to Reuters report. The deal will give the streaming giant control of one of Hollywood’s oldest and most iconic entertainment companies.

This presents a major turning point for Netflix, a company that changed how people watch TV and films. Now, the disruptor has effectively become a traditional Hollywood studio itself.

During a call with investors, Netflix Co-CEO Ted Sarandos said, “I know some of you are surprised that we are making this acquisition – and I certainly understand why….but this is a rare opportunity that’s going to help us achieve our mission to entertain the world, and bring them together through great stories”.

The deal comes weeks after a tense bidding battle that stretched over several weeks. Netflix ultimately put forward an offer of nearly $28 per share, beating out Paramount Skydance, which had repeatedly made unsolicited bids to buy all of Warner Bros. Discovery, including its cable networks that were set to be spun off.

The platform will also gain access to Warner Bros.’ vast trove of content, which was built over the last century, including marquee franchises such as Game of Thrones, Harry Potter and Comics’ roster of superheroes like Batman and Superman.

“The two companies together will help define the next century of storytelling. The goal is to become HBO faster than HBO can become us,” said Sarandos, as quoted by Reuters.

“There will be resistance from parts of Hollywood and various unions. HBO, the creative jewel, would be terribly exposed within Netflix, although it has survived difficult owners for a lot of its existence,” said Tom Harrington, head of television at Enders Analysis in London.

Paramount, meanwhile, sparked the takeover battle with a string of unsolicited bids and has close ties to the Trump administration. The company raised objections to the sale process earlier in the week, claiming Netflix was given preferential treatment.

Even before the offers were submitted, some US lawmakers warned that a Netflix–Warner Bros. Discovery merger could hurt consumers and weaken Hollywood’s competitive landscape. Concerns have surfaced across the industry as well.

Cinema United, a global trade group for movie theaters, said the deal represents an “unprecedented threat” to cinemas worldwide. Former WarnerMedia chief Jason Kilar also argued that selling WBD to Netflix would be one of the most damaging moves for competition in Hollywood.

Netflix has tried to ease those fears, saying the takeover would expand viewing choices, increase its US production capacity, strengthen long-term investment in original programming and generate more jobs and opportunities for creators.