"The acquisition marks a dramatic strategic shift for Netflix, which has never made a deal of this scope. The streaming pioneer grew to become Hollywood's most valuable company, without the benefit of a library or studio, by licensing programs from others and then expanding into original content. With the purchase, Netflix becomes owner of the HBO network, along with its library of hit shows like The Sopranos and TheWhite Lotus."
"Netflix said it expects to maintain Warner Bros.' current operations and build on its strengths, including theatrical releases for films, a point that had been a cause of concern in Hollywood. Netflix said the deal will allow it to "significantly expand" US production capacity and invest in original content, which will create jobs and strengthen the entertainment industry. Still, the combination is also expected to create "at least $2 billion to $3 billion" in cost savings per year by the third year,"
Netflix agreed to buy Warner Bros. Discovery for a $72 billion equity valuation and about $82.7 billion enterprise value, with Warner shareholders receiving $27.75 a share in cash and Netflix stock. Warner Bros. will complete a planned spinoff of its networks division, including CNN, TBS and TNT, prior to closing, currently expected in the third quarter of 2026. The deal transfers HBO, major TV and film libraries and the Burbank studio complex to Netflix. Netflix plans to maintain Warner operations, continue theatrical releases, expand U.S. production, invest in originals, create jobs and target $2–3 billion in annual cost savings by year three.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]