Netflix has secured a monumental deal to acquire Warner Bros, marking a significant reshuffling of the film and streaming landscape.
The formal announcement made on Friday confirmed that Netflix would take over the major film and streaming company Warner Bros in a transaction valued at $72bn (£54bn).
If the deal clears regulatory hurdles, it could revolutionise the film industry at a time when subscription services are gaining ground over traditional cinemas, and artificial intelligence poses a threat to the careers of actors and producers.
However, these regulatory processes could potentially delay the finalisation of the agreement until 2027.
As per the terms of the deal, Discovery Global, which encompasses news broadcaster CNN and several US channels, will separate from Warner Bros, as reported by City AM.
But HBO, the creator of hugely popular TV series including Succession, will be incorporated into Netflix.
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 announcement of the takeover brings an end to a bidding war in the US for Warner Bros, with Sky’s owner Comcast and Paramount Skydance also vying against Netflix for the creators of Harry Potter and Game of Thrones.
This surge in deal-making activity within the global media sector underscores executives’ ongoing concerns about the future of entertainment.
At present, Comcast is negotiating to acquire ITV’s broadcasting division in the UK for approximately £2bn, which would bring the TV channels and streaming service ITX under the umbrella of the US media company that owns Universal Studios.
Despite being the more valuable segment of the business, ITV Studios, the production arm responsible for major drama series and shows such as Love Island, is not included in the discussions.
