Netflix is buying HBO Max, Warner Bros. in blockbuster $83 billion deal

Netflix has just announced a massive deal that, if it earns regulatory approval, could change the Hollywood landscape forever. Netflix is acquiring Warner Bros. in an estimated $82.7 billion deal, and will take ownership of its film and television studios, HBO Max, and HBO.

Netflix acquisition of Warner Bros. expected to close in 12-18 months

The highly publicized sale of Warner Bros. Discovery has reached a tipping point. Though Paramount Skydance and Comcast were part of the bidding war, Netflix has come out on top.

Today Netflix announced the blockbuster acquisition, which pays $27.75 per WBD share for a total enterprise value of approximately $82.7 billion. That includes equity value of $72.0 billion, plus taking on existing WBD debt.

Here are Netflix’s co-CEOs on the announcement:

“Our mission has always been to entertain the world,” said Ted Sarandos, co-CEO of Netflix. “By combining Warner Bros.’ incredible library of shows and movies—from timeless classics like Casablanca and Citizen Kane to modern favorites like Harry Potter and Friends—with our culture-defining titles like Stranger Things, KPop Demon Hunters and Squid Game, we’ll be able to do that even better. Together, we can give audiences more of what they love and help define the next century of storytelling.” 

“This acquisition will improve our offering and accelerate our business for decades to come,” continued Greg Peters, co-CEO of Netflix. “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.”

There’s no guarantee the deal will get the necessary regulatory approvals, but if it does, Netflix expects the deal to close in 12-18 months.

Questions abound for Hollywood, Apple, and the whole streaming landscape

Any sale of the Warner Bros. library, film and TV studios, and HBO Max was going to have massive ripple effects throughout Hollywood.

But Netflix being the top bidder raises an especially huge number of questions and potential concerns.

The company has already been seen by many as winner of the streaming wars, with Netflix the long-time leader ahead of other streamers.

It has also historically been very averse to offering major theatrical runs for its films. But now, historic and bankable IP like Batman, Harry Potter, and more will be owned by Netflix.

The announcement press release says: “Netflix expects to maintain Warner Bros.’ current operations and build on its strengths, including theatrical releases for films.” But will those theatrical pushes be as robust? And will they last for years to come, or be a short-term promise until the deal’s approved and existing contracts are fulfilled?

There’s also the question of how Apple might be impacted.

Currently, Warner Bros. Television produces many hit shows for Apple TV, including Ted Lasso and Shrinking. Will those relationships continue as normal, or will Netflix want to use the studio for its own exclusive content?

One thing is clear: the film and TV industry is in for a wild next couple of years.

Apple TV is available for $12.99 per month and features hit TV shows and movies like Ted Lasso, Severance, Pluribus, and more. You can also get it through the Apple One bundle.

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