Netflix too Acquire Warner Bros. Discovery in $82.7 Billion Deal, Outmaneuvering Paramount‘s David ellison
LOS ANGELES – In a seismic shift for the entertainment industry, Netflix has reached a definitive agreement to acquire Warner Bros. Discovery (WBD) for approximately $82.7 billion, including an equity value of $72.0 billion. The deal, announced Friday, concludes a fiercely contested bidding war that also included Paramount, led by David Ellison, and Comcast.Fifteen days prior, the three companies submitted their bids to acquire WBD, setting the stage for this landmark transaction.
The acquisition will bring iconic film and television studios, along with streaming services HBO Max and HBO, under the netflix umbrella. The deal is valued at $27.75 per WBD share, subject to a pre-defined collar.
“Our mission has always been to entertain the world,” said Ted Sarandos, co-CEO of Netflix, in a statement. “By combining Warner Bros.’ astonishing library of shows and movies-from timeless classics like Casablanca and Citizen Kane to modern favorites 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. Together,we can give audiences more of what they love and help define the next century of storytelling.”
Warner Bros. Discovery CEO David Zaslav echoed the sentiment, stating, “Today’s declaration 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.”
Notably, the deal does not include WBD’s global networks division. This segment will be spun off as a separate, publicly traded company named Discovery Global, encompassing brands such as CNN and TNT Sports.
While the agreement marks a significant milestone, it is not yet finalized. The acquisition faces potential hurdles in the form of intense regulatory scrutiny. Sources indicate that former President Donald Trump, who has publicly expressed support for David Ellison’s vision of a Warner Bros.-Paramount merger, may pose a particular challenge to the deal’s approval. Ellison officially acquired Paramount this summer.
