Netflix has agreed to buy Warner Bros’ film and streaming businesses in a blockbuster $72bn (£54bn) deal, creating a new entertainment powerhouse. The streaming giant beat rivals Comcast and Paramount Skydance after a drawn-out bidding battle.
Warner Bros brings an unrivalled catalogue of franchises including Harry Potter, Game of Thrones, and the streaming service HBO Max. Netflix plans to combine these with its original hits like Stranger Things, aiming to “define the next century of storytelling.” The companies say they are confident regulators will approve the deal, though final sign-off is still required.
Netflix co-chief executive Ted Sarandos highlighted potential efficiencies, projecting $2-3bn in savings by cutting overlapping support and technology operations. Warner Bros films will continue to release in cinemas, and the television studio will still produce for third parties, while Netflix will maintain its exclusive content production.
Industry figures have expressed concern over the impact on cinemas. Michael O’Leary, CEO of trade body Cinema United, called the acquisition an “unprecedented threat” that could affect theatres from global chains to small local screens.
The acquisition will complete after Warner Bros finalises plans to split its streaming and studio operations from its global networks division next year. The remaining networks, including CNN and Discovery channels in Europe, will become Discovery Global, while TNT Sports International stays with the division sold to Netflix.
Netflix described the deal as a “rare opportunity” to secure its position for decades, while Warner Bros CEO David Zaslav said it would bring together “two of the greatest storytelling companies in the world.”