Netflix to Acquire Warner Bros. in $82.7 Billion All-Cash Deal

Netflix has announced an agreement to acquire Warner Bros.' film and television studios, including HBO and HBO Max, in an all-cash transaction valued at $82.7 billion. The deal, which excludes Warner Bros. Discovery's linear television assets, is expected to close following regulatory approvals and the separation of Discovery Global into a new publicly traded company.

The acquisition will bring together iconic franchises such as 'Game of Thrones,' 'Harry Potter,' and DC Comics properties under Netflix's umbrella. Netflix co-CEO Ted Sarandos stated, "By combining Warner Bros.' incredible library of shows and movies... with our culture-defining titles... we'll be able to... give audiences more of what they love and help define the next century of storytelling."

The agreement follows a competitive bidding process, with Paramount Skydance submitting a $77.9 billion all-cash hostile takeover bid for Warner Bros. Discovery. However, Warner Bros. Discovery's board rejected Paramount's offer, citing concerns over debt levels and the structure of the proposal, and recommended shareholders support Netflix's bid.

Regulatory scrutiny is anticipated due to the scale of the merger. Netflix has emphasized its commitment to maintaining Warner Bros.' current operations and preserving the theatrical release model. Sarandos addressed concerns about potential changes to release windows, affirming that Warner Bros. films would continue to follow the industry-standard 45-day theatrical window.

The transaction is subject to regulatory approvals and is expected to close in 12 to 18 months. Warner Bros. Discovery shareholders will receive $27.75 per share in cash, with the total enterprise value of the deal estimated at $82.7 billion.