It is the largest consolidation in Hollywood in a long time: Netflix has signed a purchase agreement to acquire Warner Bros. Although the games business is not mentioned, US media reports indicate that it is part of the planned deal.
Hollywood is facing a fundamental change once again: as announced today, Netflix has won the bidding war for Warner Bros. According to its own statements, the streaming service has signed a definitive purchase agreement to acquire Warner Bros., including its film and television studios, HBO Max, and HBO.
The volume of the acquisition is estimated at $82.7 million. In addition to various approvals, including from regulatory authorities, the sale of Discovery Global is a prerequisite for the deal.
The official statements on the takeover are brimming with optimism: "Our mission has always been to entertain the world," said Ted Sarandos, co-CEO of Netflix. "By combining Warner Bros.' incredible library of shows and movies – from timeless classics like Casablancaand Citizen Kaneto modern favorites like Harry Potter and Friends – with our culture-defining titles like Stranger Things, KPop Demon Hunters and Squid Game, 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."
"This acquisition will improve our offering and accelerate our business for decades to come," continued Greg Peters, co-CEO of Netflix. "Warner Bros. has helped define entertainment for more than a century and continues to do so with phenomenal creative executives and production capabilities. With our global reach and proven business model, we can introduce a broader audience to the worlds they create – giving our members more options, attracting more fans to our best-in-class streaming service, strengthening the entire entertainment industry and creating more value for shareholders."
"Today'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 most," said 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 culture. By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world's most resonant stories for generations to come."
The specific impact of the takeover, if it goes ahead, remains unclear. According to the announcement, Warner's operating business will continue as before. Nevertheless, consolidation is likely, as is always the case with such large takeovers.
There is also no official clarity regarding the games business. Both Warner Bros. and Netflix have their own games divisions, but both are currently experiencing a crisis. However, US media outlets such as Game Developer report that a spokesperson for Warner Bros. Discovery has confirmed that Warner Bros. Games will be part of the takeover.
So, it remains exciting, even if we now at least know who will be taking over Warner.
