After announcing on Friday the acquisition of Warner Bros. Discovery, Netflix sent an email to subscribers, clarifying that, for now, each company’s film products remain on their respective services. Neither the platform nor the current content will be subject to any changes.
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The deal, the email said, “unites the leading entertainment service with Warner Bros.” iconic stories, bringing together some of the world’s most beloved franchises, such as Harry Potter, Friends, The Big Bang Theory, Casablanca, Game of Thrones and DC Universe.
In another part of the statement, Netflix emphasizes that the streams “will continue to operate separately” due to actions that need to be taken before the deal closes, such as approvals from regulators and shareholders. The changes, he specifies, will be communicated later.
The deal between the two giants has caught the market’s attention. Netflix has completed the purchase of Warner Bros Discovery – acquiring its film and television studio division, in addition to its streaming division – for 72 billion US dollars. This week, Netflix made a mostly cash offer in a new round of bidding.
Under the terms of the agreement, Warner Bros. shareholders. will receive US$27.75 per share, in cash and Netflix stock. The total value of the combined companies (enterprise value) is approximately US$82.7 billion.
Netflix took the lead in negotiations, bypassing Paramount Skydance and Comcast, which were also competing for the asset.
Before the sale closes, Warner Bros. – valued at more than $60 billion in total – will complete the planned spin-off of cable channels such as CNN, TBS and TNT.
The deal brings significant change to the entertainment industry, uniting the world’s dominant paid streaming service with one of Hollywood’s oldest and most revered studios.
Netflix is the world’s largest paid streaming service, with over 300 million subscribers. HBO Max has 128 million. The union would create a colossus with greater bargaining power with theater owners and entertainment industry unions.
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