It’s official – Netflix is buying Warner Bros. for over $82B

For months, we have been hearing rumours that Warner Bros is seeking a buyer. Now, Netflix has emerged as the bidding war winner with the announcement of an $82.7B acquisition deal. 

Due to the Warner Bros. Discovery merger, this acquisition is a little more complicated than it initially seems. Earlier this year, WB Discovery split into two distinct groups, a Global Networks group comprising of sports and news stations like TNT and CNN, and a Streaming & Studios group made up of the likes of DC Studios, HBO, the WB Motion Pictures Group and more. Just as you would expect, it is this valuable Streaming & Studios Group that Netflix is acquiring.

The deal will also include a number of game studios to bolster the Netflix Games side of the business. This includes the likes of NetherRealm, Avalanche Studios and Rocksteady, along with their associated IPs like Mortal Kombat, Batman Arkham and Hogwarts Legacy. However, Netflix has not yet expressly laid out its plans for these studios yet, so there could be further impact in this area, as cost-cutting will inevitably follow on from a major $82.7 billion purchase.

This acquisition will also likely mean the end of the HBO Max streaming service as the content will be folded into the Netflix library. However, the global rollout of some of these shows on Netflix may be impacted by lingering deals. For instance, here in the UK, most HBO shows currently go to the Sky-owned Now TV service first and we do not know how many years are in place for that deal to continue.

As for the film side of things, Netflix has stated that it fully intends to continue supporting theatrical releases before placing movies on the streaming service. However, many film directors and producers still have questions around how long these theatrical rollouts will run for. In the past, Netflix has limited its theatrical film runs to just a week or two and many established directors want more than that.

Discuss on our Facebook page, HERE.

KitGuru Says: Warner Bros. has been around for a century, so this is a seismic shift in the film and TV landscape. The deal won't be completed until next year though and there is always the chance that regulators attempt to block it, as we saw with Microsoft's acquisition of Activision Blizzard, which could delay things. 

Become a Patron!