Netflix struck an agreement to acquire Warner Bros. Discovery and many associated assets in a deal valued at more than $80 billion, ending months of contentious negotiations.
The companies announced Friday that Netflix will purchase Warner Bros.’ film studio and HBO Max streaming service, with the transaction netting Warner Bros. Discovery a total value of $82.7 billion, according to a Friday press release. The acquisition is expected to close 12 to 18 months after Warner Bros. Discovery completes a planned spinoff of its Global Networks division, Discovery Global.
“I know some of you’re surprised that we’re making this acquisition,” Netflix Co-CEO Ted Sarandos said during a Friday investor call, per CNBC. “We already have incredible shows and movies and a great business model … This is a rare opportunity. It’s going to help us achieve our mission to entertain the world.”
Netflix has previously been criticized for its work with the Obamas and its production of children’s content featuring transgender characters and other “woke agenda” programming, as an October X post by the platform’s owner Elon Musk had alleged. Musk said in the post, “Cancel Netflix for the health of your kids.”
Reed Hastings, the Netflix co-founder who currently serves as Chairman of the board, is a Democratic Party megadonor, having given $3 million to a fund supporting California Gov. Gavin Newsom in 2021 and $7 million to failed presidential hopeful Kamala Harris’ super PAC in 2024.
The deal brings together Netflix’s already substantial streaming platform with Warner Bros.’ storied library, including franchises such as “Harry Potter,” DC Comics, and classics like “The Wizard of Oz.” HBO Max originals — including “The Sopranos” and “Game of Thrones” — will also eventually come under Netflix’s umbrella.
Warner Bros. will retain its Discovery Global division post-acquisition, which will operate CNN and other cable channels, according to a Friday CNN report.
Warner Bros. Discovery President and CEO David Zaslav said the merger would strengthen the future of the company’s most recognizable properties.
“For more than a century, Warner Bros. has thrilled audiences, captured the world’s attention, and shaped our culture,” he said. “By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come.”
The blockbuster agreement prompted political pushback in November, as the deal came closer to fruition.
Republican Kansas Sen. Roger Marshall urged regulators in a mid-November letter to intensify scrutiny of a Netflix-Warner Bros. acquisition, warning that “such a transaction would constitute a major vertical and horizontal consolidation in a sector that is already marked by limited competition.”
“If Netflix reached a deal to acquire Warner Bros., it would raise significant antitrust questions that warrant especially rigorous review,” Marshall wrote in the letter to the Department of Justice and Federal Trade Commission.
The senator added that “Netflix holds a dominant position in the global streaming marketplace — boasting more than 300 million subscribers and exercising substantial control over both distribution and content.”
Marshall argued that the combination “risks diminishing competitive pressure, consequently enabling Netflix to raise prices, restrict output, and reduce the variety of content available to consumers.”
The agreement, approved unanimously by both companies’ boards, includes a $5.8 billion “breakup fee” owed by Netflix if the deal collapses, and a $2.8 billion fee payable by Warner Bros. should it pursue a different buyer.
Warner Bros. did not immediately respond to the Daily Caller News Foundation’s request for comment. Netflix could not be reached for comment.
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