Netflix announced that it has reached an agreement to acquire Warner Bros. for $82.7 billion. The purchase will close after Warner Bros.' planned separation from Discovery and will see the streaming platform acquire the studio, both HBO and HBO Max, as well as access to copyrights such as Harry Potter, Game of Thrones and DC Comics.
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Yesterday, it was reported that Netflix won the bidding war to buy Warner Bros.' studio and streaming assets, offering $30 per share and pledging to pay $5 billion if regulators block the acquisition. Netflix's offer beat out interest from Comcast and Paramount, which had just completed its own merger with Skydance, although initial interest had also been reported from Amazon and Apple.
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Warner Bros. Discovery said it was open to a takeover in October, months after announcing plans to split the company into two parts: the studio and streaming business on one side and the cable business on the other. While Paramount, which had three early bids rejected, had reportedly hoped to buy both parts of the company, Netflix is focusing on the studio side.
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Any deal would have to clear regulatory hurdles, with opposition already reported from the Justice Department. And if it goes through, Netflix would have to adjust to a new role in Hollywood, managing one of the biggest and oldest studios, including the theatrical business from which it has historically shied away.
