US-based OTT giant Netflix has agreed to acquire leading Hollywood studio Warner Bros in a deal worth $82.7 billion. The consolidation move brings together the world’s largest streaming platform with one of Hollywood’s most storied studios.
The acquisition includes HBO, HBO Max, Warner Bros’ film and television studios, and a vast content library, potentially altering the balance of power in global entertainment, said a Netflix press statement.
What the deal covers
The transaction will see Netflix take control of Warner Bros’ key content divisions, including:
1) Warner Bros Motion Picture Group and Television Group
2) HBO and the HBO Max streaming service
3) A deep catalogue of films and TV shows, including several long-running franchises
Legacy linear TV assets and cable networks operated by Warner Bros Discovery are not part of the deal, aligning with Netflix’s longstanding focus on streaming rather than traditional broadcast operations.
Strategic shift for Netflix
The move marks a significant pivot for Netflix, which has largely built its dominance through a mix of licensed content and in-house original programming.
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With this acquisition, Netflix is set to absorb Warner Bros’ production capacity and gain exclusive access to its acclaimed library, reducing reliance on external studios and reinforcing its position in an increasingly competitive streaming market, the press statement said.
Control of HBO Max also allows Netflix to expand its premium streaming offering, giving it a stronger foothold in regions where HBO has been a dominant brand, it added.
Regulatory scrutiny
Netflix secured the deal after outbidding other major players including Paramount-Backed Skydance and Comcast. According to reports, the bidding process saw aggressive offers from multiple firms seeking to acquire Warner Bros’ entertainment assets.
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The agreement is subject to regulatory approval, with antitrust authorities in the United States and other key markets expected to examine the deal closely. Analysts have noted that the combination of two major players in film and streaming could raise concerns around market concentration and content exclusivity.
If approved, the acquisition could lead to changes in how content is distributed and consumed. Merging the two platforms may streamline access for viewers, but could also result in content being withdrawn from rival services. The deal may also impact licensing practices and accelerate the trend of media consolidation within the streaming sector.
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