Netflix Acquires Warner Bros: A Landmark Deal in the Entertainment Industry
Business
After months of negotiations, Netflix has announced the acquisition of Warner Bros Discovery for $82.7 billion, gaining control over the Harry Potter, DC and Game of Thrones franchises, as well as HBO and HBO Max. This marks one of the largest and most influential deals in the modern film and streaming landscape, significantly shifting Hollywood’s power dynamics.
Under the agreement, Netflix will take over Warner Bros’ film and TV studios, archives, and the entire HBO premium content library. Late-night shows, including Last Week Tonight, will also fall under Netflix’s corporate umbrella. The company has stated that Warner Bros will continue operating in its current form during the initial phase.
Warner Bros Discovery had recently considered splitting its business into two publicly traded entities: a studio-and-streaming division and a separate cable-network company named Discovery Global. This structure enabled Netflix to purchase the studio and streaming assets while cable networks will be spun off into an independent business.
The deal also resolves long-standing uncertainty regarding HBO’s future — the iconic brand will remain part of the assets acquired by Netflix.
The acquisition has been approved by both companies’ boards, but still requires clearance from antitrust regulators in the U.S. and internationally. Authorities will review whether combining Netflix’s dominant streaming platform with HBO Max and one of Hollywood’s largest studios creates excessive market concentration.
Analysts expect the merger to trigger one of the most significant antitrust reviews in recent years.
Warner Bros Discovery had recently considered splitting its business into two publicly traded entities: a studio-and-streaming division and a separate cable-network company named Discovery Global. This structure enabled Netflix to purchase the studio and streaming assets while cable networks will be spun off into an independent business.
The deal also resolves long-standing uncertainty regarding HBO’s future — the iconic brand will remain part of the assets acquired by Netflix.
The acquisition has been approved by both companies’ boards, but still requires clearance from antitrust regulators in the U.S. and internationally. Authorities will review whether combining Netflix’s dominant streaming platform with HBO Max and one of Hollywood’s largest studios creates excessive market concentration.
Analysts expect the merger to trigger one of the most significant antitrust reviews in recent years.
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