Netflix and Warner Bros. Discovery announced an agreement The streaming giant will acquire Warner Bros. on Friday.
As part of the deal, Netflix will receive Warner Bros.” film and television studios, including HBO Max and HBO, as well as Warner Bros. Games. The total transaction value (including debt) is approximately US$82.7 billion (approximately C$114.8 billion) and the equity value is US$72 billion (approximately C$99.9 billion). Diversity reports that the deal came after a week-long battle with Paramount Skydance and Comcast.
In announcing the deal, Netflix said it “expects to retain Warner Bros.” current activities and build on its strengths, including theatrical film releases.” Diversity noted that Warner Bros. There are agreements to release films in cinemas until 2029.
Moreover, Netflix said it will keep the HBO Max streaming service, at least in the short term, and will also add HBO and HBO Max content to its own platform. It remains to be seen how this will impact Canadians, given that there is a lot of HBO content currently available on the channel. Bell's Crave Service north of the border.
As for the games, a Warner Bros. spokesman. Discovery confirmed this. Game developer that the company's gaming division was included in the deal. The Warner Bros. Games includes studios such as NetherRealm (Mortal Kombat), Rocksteady (Batman: Arkham) and TT Games, which produces many Lego video games.
The gaming portion of the acquisition is notable given Netflix's efforts break into the game. In recent years, the company has offered some games as part of its subscription, including tie-ins to some of its popular content as well as games from other studios. However, Netflix's announcement was focused solely on Warner Bros.' film and television division, so it's unclear what impact the Warner Bros. acquisition will have. Games (if it takes place at all).
The transaction is contingent on the spin-off of Discovery Global and will also require regulatory approval. The agreement also stipulates that Netflix must pay Warner Bros. a breakup fee of US$5.8 billion (C$8 billion) if the deal is not consummated under certain circumstances.
Netflix said in its release that the deal will lead to a “stronger entertainment industry,” but as we've seen time and time again with large acquisitions like this, it rarely makes the industry stronger. The constant mergers and acquisitions of media in the United States have led to the concentration of media control in the hands of a few giants, many layoffs, and much more.
The Discovery Global spin-off is expected to close in the third quarter of 2026, followed by the closing of the Netflix deal.
Source: Netflix By using: Diversity, Game developer
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