Netflix to acquire Warner Bros Discovery for nearly $83 billion
The merger is set to transform the US film and media industry
Streaming giant Netflix will acquire film and television studio Warner Bros. Discovery for nearly $83 billion, the two US companies announced in a joint statement Friday.
The acquisition, which gives Netflix access to a vast film catalog as well as the prestigious streaming service HBO Max, is the largest consolidation deal in the entertainment industry since Disney's $71 billion acquisition of Fox in 2019.
The parent company of HBO, CNN and the Warner Bros film studio officially put itself up for sale in October after receiving multiple unsolicited offers, setting aside a planned split into two separate entities -- one focused on streaming and studios, the other on traditional cable networks.
Warner Bros Discovery was originally targeted by Paramount -- recently acquired by the billionaire tech family of Oracle founder Larry Ellison, one of the world's richest men.
According to Bloomberg, Netflix joined Paramount Skydance and Comcast, the owner of NBCUniversal, in a second round of an auction that was being negotiated throughout the US Thanksgiving holiday.
Paramount also submitted a bid close to $27 a share on Thursday, CNN reported, citing an unnamed source.
Bloomberg reported Thursday that Netflix and Warner Bros Discovery had entered exclusive talks for the company's TV and film studios and streaming service HBO Max.
Netflix is the world's largest streaming service with over 280 million subscribers globally.
The deal will bulk up Netflix's already considerable content production capabilities and secure premium assets like HBO and Warner Bros studios.
It will also likely face close scrutiny by antitrust authorities in the United States and potentially in other major markets.
Top Hollywood players had voiced their preference to see Warner Bros not end up in the hands of Netflix, citing concerns that the streaming company largely seeks to limit theatrical releases of its film productions.
"Titanic" director James Cameron told podcast "The Town" recently that a takeover of Warner Bros by Netflix would be "a disaster."