NEW YORK (AP) — Netflix struck a deal Friday to buy Warner Bros. Discovery, the Hollywood giant behind “Harry Potter” and HBO Max, in a $72 billion deal
The Netflix logo is shown in this photo from the company's website on Feb. 2, 2023, in New York. , in a $72 billion deal that would bring together two of the biggest players in television and film and potentially If approved by regulators, the merger would put two of the world’s biggest streaming services under the same ownership — and join Warner’s television and motion picture division, including“Netflix is the top streaming service today.
Now combined with HBO Max, it will absolutely cement itself as the Goliath in the streaming industry,” said Mike Proulx, vice president and research director at Forrester, a market research company. The cash and stock deal is valued at $27.75 per Warner share, giving it a total enterprise value of $82.7 billion, including debt. The transaction is expected to close in the next 12 to 18 months, after Warner completes its previously announcedOne of the big unanswered questions, Proulx added, is whether HBO Max and Netflix would “stay as separate streaming services or combine into a mega streaming service.” But either way, he said, customers could see some price relief in the form of a single subscription bill or bundle promotions, which would be a welcome change as streaming prices continue to rise and consumers feel the pinch of paying for multiple services. Of course, that all depends on whether the deal goes through. Netflix on Friday maintained that the addition of HBO and HBO Max programming will give its members “even more high-quality titles” and “optimize its plans for consumers.” Others warned that a Netflix-Warner combo could create an even bigger entertainment titan with ramifications for both consumers and people working across the film and TV industry.Gaining Warner’s legacy studios would mark a notable shift for Netflix, particularly its presence in theaters. Under the proposed acquisition, Netflix has promised to continue theatrical releases for Warner’s studio films, honoring Warner’s contractual agreements. Netflix has kept most of its original content within its core online platform. But there have been exceptions, including qualifying runs for its awards contenders, including this year’s“Our mission has always been to entertain the world,” Ted Sarandos, co-CEO of Netflix, said in a statement, adding that merging with Warner will “give audiences more of what they love.” David Zaslav, CEO of Warner Bros. Discovery, added that merging with Netflix “will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come.”for moviegoers and for people who work in theaters. Cinema United — a trade association that represents more than 30,000 movie screens in the U.S. and another 26,000 screens internationally — was quick to oppose the deal, which it said “poses an unprecedented threat to the global exhibition business.” “Netflix’s stated business model does not support theatrical exhibition. In fact, it is the opposite,” Michael O’Leary, CEO of Cinema United, said Friday. “Theaters will close, communities will suffer, jobs will be lost.”The Producers Guild of America said the Netflix deal must prove that it protects workers’ livelihoods and theatrical distribution. “Legacy studios are more than content libraries — within their vaults are the character and culture of our nation,” the union added.studios left in Hollywood. If the Netflix sale goes through, the remaining legacy studios would be Disney, Paramount, Sony Pictures and Universal. Democratic Sen. Elizabeth Warren, a longtime antitrust hawk, said the proposed merger “looks like an anti-monopoly nightmare.” And Sen. Roger Marshall, a Kansas Republican and close Trump ally, said the deal “raises serious red flags for consumers, creators, movie theaters and local businesses alike.” Friday’s announcement followed a monthslong bidding war for Warner. Rumors of interest from Netflix, as well as NBC owner Comcast, started bubbling up in the fall. Skydance-owned Paramount, which completedParamount seemed like the front-runner for some time, and unlike Netflix or Comcast, it was reportedly vying to buy Warner’s entire company, including its cable networks and news business. Beyond combining two of Hollywood’s legacy studios, that would have brought Paramount-owned CBS and Warner’s CNN under the same roof. Such sizeable consolidation would have vastly reshaped America’s TV media landscape, and perhaps raised questions about shifts in editorial control — as seenRegulators and politics could decide fate of deal While Netflix’s bid won over Warner’s approval, experts stressed that a bumpy regulatory road lies ahead. “No doubt politics are going to come into play,” Proulx said. He pointed particularly to the Trump administration’s relationship with the family of Larry Ellison, whose son David runs Paramount, andof that company’s frustrations over Warner’s sale process — both of which, he noted, “can’t be ignored as part of the calculus as to the outcome of all of this.” Christina DePasquale, a Johns Hopkins University professor who specializes in antitrust issues, said the government might be skeptical of a streaming behemoth controlling both the production and distribution of content.its streaming and studio operations from its cable business back in June. The move arrived as more and more consumers continue to “cut the cord” and rely almost entirely on streaming. The company outlined plans for HBO, HBO Max, as well as Warner Bros. Television, Warner Bros. Motion Picture Group and DC Studios, to become part of a new streaming and studios company. That is what Netflix is now acquiring. Meanwhile, networks such as CNN, Discovery and TNT Sports and other digital products will make up a separate cable counterpart called Discovery Global., citing “unsolicited interest” it had received. Now that it’s agreed to Netflix’s bid, Discovery Global is set to become a new publicly traded company by the third quarter of 2026.Ott reported from Washington. Associated Press writers Matt Sedensky in New York, Matt Brown in Washington and Lindsey Bahr in Pittsburgh contributed to this report.Two brothers who own a gym on Rochester's east side are facing federal drug trafficking-related charges following an investigation by New York State Police.The Ontario County Sheriff's Office said a man is in critical condition after being found unresponsive at a motel Friday morning following an altercation.Rochester, N.Y. Police said a business owner on the city's east side was assaulted after he caught up with a man who stole the tip jar from his business.Gates, N.Y. — One person was hospitalized following a seven-vehicle crash Friday morning on State Route 390, according to the Monroe County Sheriff's Office.The Roc Holiday Village has once again transformed Dr. Martin Luther King Jr. Memorial Park in downtown Rochester into a festive wonderland.
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