Streaming giant Netflix has closed a deal valued at $83 billion to acquire Warner Bros Discovery, in one of the most significant mergers in the history of global entertainment. The move, officially announced Friday, cements Netflix as the dominant player in Hollywood, with access to some of the industry’s most coveted franchises.
The deal gives Los Gatos’ platform control of the iconic Warner Bros. production company, as well as WBD ‘s streaming business and HBO’s premium catalog, including titles such as Harry Potter, Batman and Game of Thrones.
A multi-stage merger
As part of the deal, WBD will continue with its plan to spin off its cable television networks, including CNN, Discovery and Turner, into a separate company, the two companies said. Only then will the studio and streaming businesses officially become part of Netflix.
The purchase process was initiated in October through an auction led by WBD CEO David Zaslav, in which Netflix beat out other bids, including those from Paramount and Comcast.
Zaslav will remain at the helm of the studios
As part of the new operating scheme, the operational independence of Warner Bros. Studios will be maintained, and Zaslav himself will continue to head this unit, which is dedicated to film and television production and distribution.
The executive expressed his enthusiasm for the deal: “By joining with Netflix, we will ensure that people around the world can continue to enjoy the most powerful stories for generations to come.”
Agreement terms and pending approval
Each WBD shareholder will receive $23.3 in cash and $4.5 in Netflix stock as part of the deal. WBD’s total enterprise value, including its debt, is estimated at $82.7 billion, while its stock market value amounts to $72 billion.
The agreement has been unanimously approved by the boards of directors of both companies, but must still receive the approval of WBD’s shareholders and pass regulatory review. According to the companies’ projections, the transaction is expected to close within 12 to 18 months.
The promise to maintain theatrical releases
One of the commitments made by Netflix as part of this acquisition is to maintain the theatrical releases of Warner Bros. films, which is a statement of intent to the traditional film industry, which continues to view the unstoppable advance of streaming with suspicion.
With this acquisition, Netflix not only strengthens its position as a streaming leader, but also gains direct access to one of the most powerful production and distribution channels in the audiovisual world.
An international regulatory challenge
The merger between Netflix and Warner Bros Discovery will also pose a challenge to regulators in the United States and Europe, where both companies have significant operations. Sources close to the deal have said they are confident of overcoming potential legal hurdles, arguing that the current market is highly competitive, with rivals such as Disney+, Amazon Prime Video and platforms such as YouTube vying for global audiences.
A movement that redefines the industry
The deal between Netflix and Warner Bros Discovery represents a radical shift in the balance of power in the audiovisual industry, merging the most influential technology company in digital consumption with one of the most iconic production houses in film and television.
The impact of this alliance will be profound: from launch strategies, to the future of movie theaters, to the production and distribution models that will dominate the next decade.
The concentration of intellectual property, coupled with Netflix’s global distribution platform, anticipates a scenario in which content creation and access will be more centralized than ever. All this in a context where the battle for viewers’ attention is no longer fought only between Hollywood studios, but between technological giants with a global presence.
