Netflix has agreed to buy Warner Bros Discovery's film and TV studio for a staggering amount, in a deal that looks set to completely reshape the streaming industry.
The US-based streaming service is said to have been in a bidding war with rivals Comcast and Paramount Sundance, before ultimately landing the deal.
Warner Bros owns some of the biggest franchises in the world, including Game of Thrones and Harry Potter, as well as the streaming service HBO Max — all of which will pass on to Netflix if the deal goes through.
However, the purchase still needs to be approved by competition authorities, but Netflix co-chief executive Ted Sarandos has said he's 'highly confident' the acquisition would get the approval needed, adding that the streamer is running 'full speed' at the purchase.
How much will Netflix pay for Warner Bros Discovery?
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According to reports, Netflix has agreed a $27.75 per share price with Warner Bros, which equates to a purchase figure of a whopping $72 billion (£54 billion), giving the assets a total value of $82.7 billion (£62 billion). Both boards are said to have unanimously voted to approve the deal, which will allow Netflix to expand its studio production abilities and spend more cash on original content.
The agreement is set to come after Warner Bros Discovery's global networks division, Global Discovery, branches out as a publicly-traded company, which is expected to happen in late 2026.
"Our mission has always been to entertain the world. By combining Warner Bros' incredible library of shows and movies - from timeless classics like Casablanca and Citizen Kane to modern favourites 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," Sarandos said in a statement.
"Together, we can give audiences more of what they love and help define the next century of storytelling."
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Greg Peters, the other co-CEO of Netflix, said: “Warner Bros. has helped define entertainment for more than a century and continues to do so with phenomenal creative executives and production capabilities. With our global reach and proven business model, we can introduce a broader audience to the worlds they create—giving our members more options, attracting more fans to our best-in-class streaming service, strengthening the entire entertainment industry and creating more value for shareholders.”
Meanwhile, David Zaslav, president and CEO of Warner Bros Discovery, added: "Today’s announcement combines two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most.
"For more than a century, Warner Bros. has thrilled audiences, captured the world’s attention, and shaped our culture. By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come."
Topics: HBO, Netflix, TV and Film, Warner Bros, Game of Thrones, Harry Potter
Emma Rosemurgey