Netflix Purchases Warner Bros. For $82.7 Billion
Hollywood is one step closer to a monopoly, as Netflix has won a bidding war for Warner Bros. Discovery’s studios and streaming division.
In an announcement from Netflix, the streaming giant revealed that they had won a bidding war for iconic Hollywood studio Warner Bros., promising to define the next century of cinematic storytelling by “creating an extraordinary entertainment offering for audiences everywhere.”
Reports place the deal at $82.7 billion in enterprise value, or $72B equity value at $27.75 per share. The deal is expected to be completed in Q3 2026, barring issues in the regulatory process.
Reactions to the deal have been mixed, with many praising the fact that Warner Bros. is not being bought by Paramount’s Ellison family, who are reportedly being backed by countries in the Middle East in a debt financing offer, with others criticizing the deal for Netflix’s view on the theatrical experience and the art form as a whole.
Netflix will be acquiring all of Warner Bros.’ content library if the deal goes through, meaning Netflix will likely soon acquire DC Studios, New Line Entertainment, HBO, HBO Max, Warner Bros. Pictures, Warner Bros. Television, and everything in between.
Netflix already has exclusive licensing deals in place with the WWE, so Netflix will soon be a one-stop shop for all entertainment needs, having expanded into gaming and livestreaming in the last few years. Netflix is already the biggest streaming service by far, so adding even more firepower gives them an even bigger edge over the competition.
There have been reports that Paramount may try to make a hostile bid for Warner Bros. in an attempt to win over the shareholders with a higher sum for their shares.
If this happens, the entire deal becomes muddier. If a deal doesn’t happen with Netflix, Warner Bros. would have to pay Netflix a break-up fee of $2.8 billion, which would likely come out of Paramount’s pockets. On the other end, Netflix would pay $5.8 billion to Warner Bros. if they choose not to go through with the deal.
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