UPDATE: Netflix has confirmed the acquisition of Warner Bros in "a definitive agreement", in a deal worth $82.7 billion. The deal sees Netflix acquire the Warner Bros catalogue, its film and TV studios, HBO Max, and HBO.
“Our mission has always been to entertain the world,” Netflix co-CEO Ted Sarandos said in a statement. “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 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.”
The press release notes that: "Netflix expects to maintain Warner Bros.’ current operations and build on its strengths, including theatrical releases for films."
The original story runs as follows:
—-
The media landscape is about to change in a big way… again. It changed in 2009 with Disney's $4 billion acquisition of Marvel. It changed in 2012 and 2017 when the House of Mouse bought both Lucasfilm and 20th Century Fox. And it changed in 2021 when Amazon splashed $8 billion on MGM Studios. Those deals may soon all seem comparatively small-fry however as Deadline reports that Netflix has emerged with the highest — and so far winning — bid to buy Warner Bros. Discovery, edging out Paramount and Comcast after a fiercely contested bidding war in recent months.
According to Deadline's sources, Netflix has offered a cash deal valued at approximately $28 per share for Warner Bros. Discovery, which would place the streaming giant's overall deal (which, noteworthily, would contain a $5 billion break-up fee from Netflix if it all falls through) in the region of an eye-watering $70-75 billion. It's a breathtaking sum of money, but when you consider what that money would place in Netflix's hands — DC Comics, Harry Potter, Hanna-Barbera, Game Of Thrones, HBO (and HBO Max), New Line — it's not hard to see why the battle for David Zaslav's business has been so cutthroat. For Netflix in particular, which has thus far subsisted on the strength of licensed content, its own IP, and a combined streaming and limited theatrical run release model, the acquisition of WBD would open the doors not only to a vast back-catalogue of legacy titles and HBO hits, but also the resources to increase its global theatrical distribution efforts and physical media production plans… should they so wish.
Click here to preview your posts with PRO themes ››
Given the potential existential consequences of a streaming-first company acquiring a prestige brand known for its cinematic releases and prestige televisual output, there's been no shortage of pushback already on the proposed Netflix-Warner merger. As Variety reports, the DGA (Directors Guild of America) and exhibition trade organisation Cinema United have both come out already with strongly worded statements warning of the potential dire consequences of a merger on theatrical cinemagoing. Avatar: Fire And Ash filmmaker James Cameron told Puck just last week that Netflix nabbing WBD would be "a disaster", while an anonymous collective of Hollywood movers and shakers have been lobbying Congress to suggest that such a deal would effectively "hold a noose around the theatrical marketplace."
At this stage, the only bid Netflix has truly won is one to talk exclusively with Warner Bros. Discovery's execs about acquiring the company, but it's certainly a step for Ted Sarandos' company in their preferred direction. With such vast sums of money in play, massively high stakes involved for all players, and the future of the cinema experience as we've known it potentially on the table, expect many more developments before ink dries on a formal deal for Netflix to take over Warner Bros. But until then, we'll bring you any major developments just as soon as we learn about them. And to think, all this just a day after HBO Max finally set a UK release date for next March… blimey!