The formalization of the agreement comes after HBO’s parent company received a series of offers, in a process that involved other companies such as Paramount/Skydance and Comcast.
This morning, Friday (5), Netflix officially concluded an agreement to acquire television and film studios, in addition to… My neighborOwned by Warner Bros. Discovery. The value of the agreed upon deal amounts to 72 billion US dollars, equivalent to about 382 billion Brazilian riyals.
Completion of the transaction is subject to approval by US government regulatory agencies. If the transaction is approved, control of important and traditional assets in the Hollywood industry will be transferred to Netflix, the leading company in the Hollywood industry. My neighbor.
This acquisition gives Netflix access to one of the most relevant collections of content in the industry. Warner Bros. owns HBO Max owns the rights to major franchises, series, and feature films, including… “Harry Potter”, “Game of Thrones”, “The Big Bang Theory”, “The Sopranos”, “The Wizard of Oz” And the entire DC Universe. The combination of these assets has the potential to elevate Netflix to the status of one of the largest media conglomerates in the world.
The transaction is expected to be completed after the separation of the Warner Bros. units. and Discovery Global. This separation is expected to be completed only in the third quarter of 2026.
Ted SarandosNetflix Co-CEO commented on the acquisition, noting that the combination of companies will allow us to offer a greater range of content to audiences and contribute to the future of narrative production. David ZaslavThe Chairman and CEO of Warner Bros. also spoke. Discovery, noting that the ad brings together two storytelling companies to bring entertainment to a wider audience.
It is important to note that Warner Bros. Discovery also owns traditional TV channels, such as CNN and TNT, however, that part of the business was not included in the announced sales agreement.
The formalization of the agreement comes after the parent company of HBO received a series of offers, in a process that involved other companies such as Paramount/Skydance and Comcast, and which Netflix won.
The final value of the acquisition is expected to be approximately US$83 billion. The $72 billion represents the value allocated to shareholders, i.e. the shares that Netflix actually pays out. However, the overall value of Warner Bros. Discovery reaches $82.7 billion when the company’s debt is included in its accounting. Therefore, Netflix pays $72 billion to shareholders, but by acquiring the company, it also assumes liabilities, increasing the total value of the deal to the full amount.
According to information from Reuters, the proposed acquisition of studios and My neighbor It could cut costs for users by promoting the Netflix and HBO Max suite of services.
In an earlier development, WBD’s board of directors rejected a nearly $60 billion bid from Paramount, then initiated a formal sale process.
Implementation of the CISG requires finalization and subsequent approval by US regulatory authorities. Through the acquisition, Netflix intends to reduce its dependence on external studios for content and enhance its expansion into new areas, such as video games, live-streamed events and the creation of new consumer services.
Sources familiar with the negotiations indicated that Netflix’s proposal is based on two main points: including a commitment to maintaining the release of Warner Bros. films; Discovery in cinemas, an appropriate step for the company, which has avoided investing in cinema exhibitions; The proposal to pay mostly in kind.
Approval of the deal may face resistance in the United States. The newspaper “New York Times” It was reported that a group of film producers sent a letter to the US Congress expressing serious concerns about the impact of the acquisition on the market.
Market analysts also expressed caution. An analyst at IG Group noted that the deal may not be the solution needed to reverse the downward trend in Netflix’s stock price. The analyst noted that industry data indicates significant overlap between subscribers to the platforms, calling into question the direct benefits. Furthermore, the issue of competition and potential political interference were highlighted as important challenges.
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