Web desk: Netflix is set to acquire Warner Bros. Discovery, the entertainment giant behind popular franchises such as Game of Thrones, DC Comics, and Harry Potter.
Netflix to buy Warner Bros. Discovery
The streaming giant and Warner Bros. Discovery are expected to sign the $83 billion agreement soon.
The acquisition will include Warner Bros. Discovery’s TV and film studios, as well as its streaming divisions. This will significantly expand Netflix’s content portfolio.
Netflix reportedly won the bidding war with an offer of $28 per share, while Warner Bros. Discovery shares closed at $24.50, giving the company a market value of around $61 billion.
In the statement announcing the merger, Netflix said it “expects to maintain Warner Bros.’ current operations…including theatrical releases for films.” The statement also added, “By adding the deep film and TV libraries and HBO and HBO Max programming, Netflix members will have even more high-quality titles from which to choose.”
The streaming giant did not specify how long Warner’s films will stay in theatres after the acquisition.
It is also unclear whether HBO’s library will be merged into Netflix or continue as a separate streaming service, Forbes reports.
Paramount’s Bid
Bloomberg and Variety reported that Paramount Skydance has raised objections over the sales process, calling it “tainted.”
In a letter to Warner’s CEO David Zaslav, Paramount’s attorneys claimed that Warner’s board had “embarked on a myopic process with a predetermined outcome that favours a single bidder,” referring to Netflix.
The December 3 letter added that Warner seemed to have “abandoned the semblance and reality of a fair transaction process, thereby abdicating its duties to stockholders.”
In an earlier letter dated December 1, Paramount argued that the Netflix deal would likely not receive regulatory approval.
“The simple truth is that a deal with Netflix as the buyer likely will never close…Netflix is the only remaining Big Tech company that has not faced serious global antitrust enforcement, but attempting to acquire the WBD assets will change that.”
The deal marks a major shift in the global media landscape.
It is being closely watched by industry analysts, who say it could reshape the future of streaming and media consolidation worldwide.
