Netflix has announced that it’s entered an agreement with Warner Bros. to acquire the latter for $82.7 billion in total enterprise value (equity valued at $72 billion). It will include film and television studios alongside HBO Max and HBO, though the release didn’t mention Warner’s game developers like NetherRealm Studios, Rocksteady Games, and so on. Discovery Global, the Global Networks division of WB, will become its own company with the separation planned to conclude by Q3 2026.
Netflix co-CEO Ted Sarandos said, “Our mission has always been to entertain the world. 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.”
Co-CEO Greg Peters added that the acquisition “will improve our offering and accelerate our business for decades to come.” Praising Warner Bros. for helping to “define entertainment for more than a century,” he noted that, “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.”
Warner Bros. Discovery president and CEO David Zaslav said, “Today’s announcement combines two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most. For more than a century, Warner Bros. has thrilled audiences, captured the world’s attention, and shaped our culture. By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come.”
Several of Warner Bros.’ properties, from DC Comics to Mortal Kombat and Harry Potter, have ties to video games, so it’s interesting to note how this could affect their respective studios. For its part, Netflix has had mixed success with its foray into games – aside from layoffs, it also split from Cozy Grove and Spirit Crossing developer Spry Fox.
