Netflix to acquire Warner Bros. in historic Hollywood deal

Warner Bros Studios marquee Photo courtesy of Warner Bros Studio Tour Hollywood In a sweeping move that could redefine the future of film and television Netflix s billion acquisition of Burbank-based Warner Bros Discovery was broadcasted Friday a blockbuster deal that would unite the streaming giant with the studio behind Harry Potter and Friends Netflix Inc and Warner Bros Discovery Inc declared in a joint comment Friday that they have entered into a definitive agreement for Netflix to acquire Warner Bros including its film and television studios and the HBO and HBO Max brands Netflix has more than million subscribers worldwide With HBO Max folded in that number would jump past million giving the company a subscriber base unmatched by any other premium streaming institution Our mission has reliably been to entertain the world Ted Sarandos co-CEO of Netflix reported in a comment By combining Warner Bros incredible library of shows and movies from timeless classics like Casablanca and Citizen Kane to modern favorites like Harry Potter and Friends with our culture-defining titles like Stranger Things KPop Demon Hunters and Squid Contest we ll be able to do that even better Together we can give audiences more of what they love and help define the next century of storytelling When completed the deal will make Netflix a Hollywood juggernaut bigger than the Walt Disney Company Netflix is offering about per Warner Bros Discovery share in a cash-and-stock deal and will take on more than billion in company debt putting the transaction s value at billion This day s announcement combines two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the largest part announced David Zaslav President and CEO of Warner Bros Discovery For more than a century Warner Bros has thrilled audiences captured the world s attention and shaped our custom By coming together with Netflix we will ensure people everywhere will continue to enjoy the world s largest part resonant stories for generations to come Momentum shifted earlier this week after Netflix Paramount and Comcast delivered binding second-round offers By Thursday night following a final deadline for sweetened bids Netflix had pulled ahead The boards of both Netflix and Warner then voted unanimously to approve the acquisition The companies commented the deal is expected to close within to months following Warner s planned spinoff of its cable networks CNN Discovery and other cable properties are not part of the acquisition However the blockbuster deal is likely to draw pushback from antitrust administrators The company s long-standing preference for debuting films on its own platform rather than in theaters is expected to be another point of contention Cinema United the world s largest exhibition business association communicated their opposition Friday to the proposed deal The proposed acquisition of Warner Bros by Netflix poses an unprecedented threat to the global exhibition business Cinema United President and CEO Michael O Leary noted in a report The negative impact of this acquisition will impact theatres from the biggest circuits to one-screen independents in small towns in the United States and around the world The theatrical business has been battered in fresh years by pandemic shutdowns and more of late dual labor strikes that stalled productions and pushed back release calendars Box office revenue and the number of wide releases remain well below pre-pandemic levels raising concerns that the industry may never fully recover The deal also drew immediate pushback from the Writers Guild of America The world s largest streaming company swallowing one of its biggest competitors is what antitrust laws were designed to prevent the WGA declared in a report The outcome would eliminate jobs push down wages worsen conditions for all entertainment workers raise prices for consumers and reduce the volume and diversity of content for all viewers Industry workers along with the population are already impacted by only a limited powerful companies maintaining tight control over what consumers can watch on television on streaming and in theaters This merger must be blocked Directors weighed in as well with the Directors Guild of America warning that consolidation could undermine competition and creative opportunity We believe that a vibrant competitive industry one that fosters creativity and encourages genuine competition for talent is essential to safeguarding the careers and creative rights of Directors and their teams the DGA announced in a report We will be meeting with Netflix to outline our concerns and better understand their vision for the future of the company While Netflix keeps most of of its original content on its streaming organization it has occasionally stepped into theaters Contemporary examples include Oscar-qualifying runs for Frankenstein special sing-along showings of KPop Demon Hunters and a planned theatrical rollout for the Stranger Things series finale City News Utility