An image that recreates Netflix’s takeover of the Warner Bros. universe. / today
In a move that severely shakes the entertainment industry, Netflix announced on Friday that it will acquire Warner Bros. Entertainment. Discovery (WBD) for approximately $83 billion, representing the largest purchase in the sector since Disney acquired Fox for $71 billion in 2019. The deal positions Netflix as one of the biggest forces in the streaming world, with an impressive catalog of titles, including some of the most popular franchises in the history of film and television.
Under this agreement, Netflix will receive a huge catalog of Warner Bros. films. And popular streaming services like HBO Max. The purchase takes place in a context in which the entertainment sector is in the midst of restructuring due to the decline of traditional television and intensifying competition in streaming.
The agreed price is $27.75 per WBD share, valuing the company at $72 billion, excluding debt. However, sources close to the Warner Bros. board of directors estimated… Discovery said the sale was supposed to be worth about $75 billion.
Netflix CEO Ted Sarandos was excited about the deal, commenting in the joint statement: “Our mission has always been to entertain the world. Today’s announcement brings together two of the world’s biggest storytelling companies.” For his part, David Zaslav, President and CEO of Warner Bros. Discovery, said: “Together we can give audiences more of what they love and help define the next century of storytelling.”
WBD separation and its effects
A key element of the deal is a restructuring that WBD has been planning for months. In June, the media group announced its intention to separate its streaming and film studio sectors into two separate companies. This separation must be completed prior to the completion of the acquisition, which is scheduled to occur in the third quarter of 2026.
In this context, the Warner Bros. purchase agreement represents Discovery by Netflix is a strategic move to strengthen Netflix’s dominance in the global streaming space. The content giant not only maintains the HBO Max platform, but also accesses a content base that includes classics like “Casablanca” and “Citizen Kane,” and hits like “Game of Thrones” and the “Harry Potter” saga.
Implications for creators and the market
Despite initial concerns expressed by analysts and certain sectors of Hollywood about the potential consequences of this purchase, Netflix executives tried to allay fears. In a call with Wall Street analysts, Ted Sarandos explained that the deal represents a “unique opportunity” for the company, and that filmmakers and creatives should not fear that the deal will affect production and work on their projects. “This is a good story because this is a thriving, growing business that will help another business grow even more prosperously,” Sarandos said.
Regarding the future of theatrical releases, Ted Sarandos confirmed that Netflix will continue with its theatrical release strategy, although it is possible that the “Windows” model will evolve in the future. According to the executive, Warner Bros. films will continue to be released. in theaters as planned, while Netflix original productions will continue on their regular release cycle.
Netflix co-CEO Greg Peters added that the company feels confident in its ability to integrate the Warner Bros. assets. successfully, highlighting that this purchase not only makes sense from a strategic standpoint, but also enhances Netflix’s ability to offer more diverse and engaging content to its subscribers. “We understand these assets, and we know how to trade them,” Peters said.
Competition and regulatory scrutiny
Although Netflix is confident in the process, the purchase is not without regulatory challenges. White House officials have expressed concern about the potential impact that an acquisition of this caliber could have on competition in the content market, especially in the United States. Despite these concerns, Sarandos and Peters were optimistic about regulatory approval, noting that the agreement is “pro-consumer, pro-innovation, pro-worker, pro-creators, and pro-growth.”
The purchase also puts Netflix in a dominant position in the market, which could redefine the TV and film landscape in the next decade. Through this acquisition, the company seeks to improve its profitability and strengthen its leadership over other entertainment giants, such as Amazon, which in 2021 acquired MGM for $8.45 billion.
An uncertain but promising future
In the coming months, the world will be closely watching the development of this deal, which will undoubtedly have ramifications throughout the entertainment ecosystem. Competition is heating up in the streaming sector, and Netflix’s acquisition of Warner Bros. Discovery is accelerating changes in the way content is produced and distributed. Moreover, the consolidation of power in the hands of a few actors could generate new market dynamics, highlighting the need for more stringent regulation in the future.
As the industry continues to evolve, consumers can expect a broader and more diverse offering of content as streaming giants align and realign their resources in search of the next big story.
Netflix will add classic films like “Casablanca,” “Game of Thrones” and “Harry Potter.”
83000
Million dollars. This is the amount that giant Netflix will pay to acquire Warner Bros. Discovery, which will represent the largest purchase in this sector since Disney acquired Fox for $72 billion in 2019.