It’s official, Netflix has beaten out bids from Comcast and Paramount to become the new owner of Warner Bros. in a deal worth $82.7 billion. It was rumored throughout the year that Warner Bros had expressed interest in potential buyout deals with Comcast, which owns NBC/Universal and Paramount, now Paramount Skydance, but streaming giant Netflix will be the one taking the company under its wing. According to Netflix’s press release, the deal is worth nearly $83 billion and is expected to close once Warner Bros. Discovery’s current restructuring plan is completed.
The aforementioned plan sees WBD splitting its Streaming & Studios division from its Global Network Divisions, which it hopes to have finished by Q3 26. The GBN divisions would include sports, Discovery, and free-to-air channels in Europe, while the streaming division will include HBO (or whatever it may be called depending on the moment). Netflix is reportedly offering a $5 billion “breakup fee” should U.S. regulators block this buyout, but has stated it could save as much $2-$3 billion per year via cost savings if the deal is approved. Meanwhile, Warner Bros. Discovery President and CEO David Zaslav, who has been working on making the company fiscally solvent again following layoffs, restructuring, and other efforts, is hailing the deal as a big step forward for the company.
“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.”
– David Zaslav, President and CEO of Warner Bros. Discovery
Strangely enough, there was no specific mention of the WB Games division, which includes popular IPs such as Batman, Harry Potter, and Mortal Kombat. While WB Games has struggled to produce a hit with its DC comics-based games in recent years, it has done well with Hogwarts Legacy, which is said to receive a sequel and the last Mortal Kombat game. WB Games is also said to still be moving forward with another Batman game after cancelling the long-gestating Wonder Woman project. Netflix has also been trying to find a place in the gaming sector, and while its titles are more mobile-centric, gaining access to WB’s gaming portfolio could be a major resource for future projects. Regardless, Netflix co-CEO Ted Sarandos had the following to say about the merger.
“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.”
Ted Sarandos, co-CEO of Netflix