Netflix announced on Friday that it is acquiring Warner Bros. Discovery, Inc. (WBD) in one of the biggest deals in the streaming world. The cash and stock transaction is valued at $27.75 per WBD share with a total enterprise value of $82.7 billion. The deal is expected to be closed in 12 – 18 months after the separation of WBD’s Global Network Division, Discovery Global, into a publicly traded company.
The acquisition involves WBD’s HBO and HBO Max. It expands Netflix’s portfolio with the addition of franchises such as The Sopranos, Game of Thrones, The Wizard of Oz, Harry Porter, and the DC Universe. The lineup joins Netflix’s already popular franchises such as Money Heist, Bridgerton, and Wednesday, amongst others.
As of January, Netflix had recorded over 300 million paying subscribers, while HBO Max, along with Discovery+, currently has around 128 million subscribers.
“This acquisition will improve our offering and accelerate our business for decades to come,” said Greg Peters, co-CEO of Netflix, in a statement. “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.”
As expected with any major acquisition, the deal could be subject to antitrust review. In November, Senators Elizabeth Warren, Bernie Sanders, and Richard Blumenthal asked the Department of Justice for a “non-biased” review, while citing that the deal would come “under a cloud of political favouritism and corruption.”
In October, Warner Bros. said it was expanding its business strategic review and officially put itself up for a potential sale. Paramount, Comcast, and Netflix submitted bids in November. Paramount initially emerged as the frontrunner, but the acquisition eventually fell to Netflix.
