Netflix buys Warner Bros. for nearly $83B

Netflix entered a definitive plan to acquire Warner Bros. Discovery, Inc. enterprise for $82.7 billion, according to a Friday statement from the streaming video service. The deal consists of cash and Warner Bros. stock for about $72 billion in total equity. The deal combines two of the greatest storytelling companies in the world, according to Warner Bros. Discovery President and CEO David Zaslav. The Warner Bros Discovery portfolio includes several other big brands, including HBO and DC Universe.

Company officials expect the newly announced acquisition to close by 2027.

The acquisition helps Netflix achieve its goal of entertaining the world with one incredible library of shows and movies, according to Netflix’s co-CEO Ted Sarandos. Netflix has emerged as a streaming giant known for TV hits like Wednesday, Squid Games, The Crown, and Stranger Things.

How will the platforms change? The deal will bring a number of Warner Bro classics, like The Wizard of Oz, Citizen Kane, Casablanca, and the Harry Potter franchise, under Netflix’s umbrella. Warner Bros’ studios and streaming services, HBO, and HBO Max, will also come under Netflix control, according to the statement. HBO is known for a number of hit TV shows, including Game of Thrones, Band of Brothers, and The Sopranos. 

What about Discovery? The Netflix deal will not impact Warner Bros.’ previously announced plan to annex its Global Network’s division, Discovery Global, into a new publicly traded company, according to Netflix. 

Dig deeper: Read my previous report on Netflix streaming competitor, Paramount, acquiring Bari Weiss’ independent news outlet, The Free Press.