Netflix snaps up Warner Bros in blockbuster £54bn deal
Netflix has clinched a blockbuster deal to take over Warner Bros in a major shake-up of the film and streaming industry.
In an announcement on Friday, it was formally announced that Netflix would take over the major streaming and film company Warner Bros in an agreement worth $72bn (£54bn).
Should the deal pass regulatory checks, it would transform the film scene when subscription services have come to win over cinemas while AI is threatening actors and producers’ careers,
Those regulatory procedures, however, could push back the full agreement to 2027.
Under the terms of the deal, Discovery Global, which houses news broadcaster CNN and some US channels, has split from Warner Bros.
But HBO, which created mega TV hits including Succession, will become a part of Netflix.
Netflix win media battles
Greg Peters, co-chief executive of Netflix said: “Warner Bros has helped define entertainment for more than a century and continues to do so with phenomenal creative executives and production capabilities.
“With our global reach and proven business model, we can introduce a broader audience to the worlds they create – giving our members more options, attracting more fans to our best-in-class streaming service, strengthening the entire entertainment industry and creating more value for shareholders.”
The takeover announcement ends a bidding war in the US for Warner Bros, with Sky owner Comcast and Paramount Skydance also rivalling Netflix for the Harry Potter and Game of Thrones maker.
The flurry of dealmaking in the international media scene reflects executives’ lingering desperation about the future of entertainment.
Comcast is currently in talks to buy ITV’s broadcasting arm in the UK for around £2bn, taking the TV channels and streaming service ITX into the arms of the US media company that owns the likes of Universal Studios.
ITV Studios, the production arm which creates major drama series and shows including Love Island, is not a part of the talks despite being the more valuable side of the business.