STREAMING WAR

Netflix Is Buying a Major Hollywood Studio for $72 Billion

The streaming giant will get control of Warner Bros.’ studios and HBO Max streaming business but not its cable networks.

Streaming giant Netflix has secured the winning bid in the race to buy pieces of Warner Bros. Discovery in a stunning deal worth $72 billion. The move positions Netflix as the biggest fish in the industry, following three decades of disruption and innovation since it was created as a DVD rental company. It said in a statement that it has reached a “definitive agreement under which Netflix will acquire Warner Bros., including its film and television studios, HBO Max and HBO.” Netflix offered $27.75 per WBD share in the deal, for an enterprise value of $82.7 billion, or $72 billion in equity. Co-CEO of Netflix Ted Sarandos said, “Together, we can give audiences more of what they love and help define the next century of storytelling.” Netflix gets the rights to the Warner Bros. library and its intellectual property, which includes DC Studios comic creations, the Harry Potter franchise, HBO dramas including Game of Thrones and over 100 years of films from the studio. Comcast and longtime frontrunner Paramount had also been involved in the fierce bidding war, the latter making three consecutive offers to buy the Hollywood icon since October. Variety reported that Paramount’s CEO, David Ellison, had offered an all-cash deal for the entire company, including cable networks such as CNN, TNT and TBS. The networks will now form a separate company.