Netflix has agreed to buy the film and streaming businesses of Warner Bros Discovery for $72 billion in a landmark takeover that promises to reshape Hollywood. The streamer beat Comcast and Paramount Skydance after a long bidding contest, securing control of some of the world’s most famous franchises, including ‘Harry Potter’, ‘Game of Thrones’ and the entire HBO Max platform.
The deal, which still requires regulatory approval, will carve Warner Bros into two parts. Netflix will acquire the studios and streaming arm, while the global networks division, featuring channels such as CNN, Discovery and TNT Sports, will be spun off into a new company called Discovery Global. TNT Sports International, however, will transfer with the studios to Netflix.
Netflix co chief executive Ted Sarandos described the agreement as a rare chance to shape the next century of entertainment. He said combining Warner Bros’ vast catalogue with Netflix’s originals will give audiences more of what they love. Co chief executive Greg Peters added that the HBO brand would remain important, although details of how it will be offered to customers are still being worked out.
The company expects to save between $2 billion to $3 billion by cutting overlapping roles in technology and support services. Warner films will continue to receive theatrical releases, and its television studios will still be free to produce programmes for rival broadcasters.
Warner Bros chief executive David Zaslav hailed the deal as the union of “two of the greatest storytelling companies in the world”. Shareholders of both firms have unanimously approved the takeover, which values Warner Bros at an enterprise level of nearly $83 billion.
Reaction across the industry has been sharply divided. The Writers Guild of America has called for the merger to be blocked, warning of job cuts, lower pay and reduced diversity of content. Cinema United chief Michael O’Leary said the move threatens cinemas of every size around the world.
Analysts have noted the scale of the challenge for Netflix. Paolo Pescatore of PP Foresight said the deal signals Netflix’s ambition to dominate global streaming but predicted major integration difficulties. Tom Harrington of Enders Analysis warned of likely cuts to film and television output and said consumers could face higher prices as Netflix gains control of more premium content.
Netflix has attempted to reassure Hollywood by promising that Warner Bros films will remain in cinemas. Yet the merger is set to face intense scrutiny from regulators and industry groups concerned about competition, pricing power and the future of creative work.
