Read the memo Warner Bros. Discovery sent employees after Netflix won the bidding war for its key assets

"Netflix is buying Warner Bros. Discovery's studio and streaming businesses in a seismic $72 billion deal that promises to shake up Hollywood. The Netflix-WBD tie-up, which the companies announced on Friday morning, would be the industry's largest since Disney bought 21st Century Fox for $71 billion in 2019. Netflix is planning to buy HBO Max and the top-performing Warner Bros. studio, but not WBD's TV networks like CNN, TNT, and TBS."

""In the coming days, we will establish an Integration Office, which will coordinate all planning with Netflix, consistent with regulatory requirements," WBD CEO David Zaslav wrote in a note to employees on Friday. "Until the transaction closes, WBD and Netflix remain separate companies. It may be tempting to reach out directly to counterparts or former colleagues at Netflix, but it is essential that all interactions are managed through this office to ensure we meet every legal and regulatory obligation.""

"Netflix must first secure regulatory approval from the US and foreign governments, which some media analysts say could be a challenge. If all goes as planned, the deal is set to close in 12 to 18 months, the companies said. Netflix beat out Paramount Skydance and Comcast in a bidding war. Since Netflix is only buying the Warner Bros. studio and HBO Max, the remaining TV assets that are seen as less valuable will be spun out, as WBD originally planned."

Netflix will buy Warner Bros. Discovery's studio and HBO Max for $72 billion, acquiring the Warner Bros. studio and streaming business while excluding WBD's TV networks such as CNN, TNT, and TBS. The deal requires regulatory approval in the US and abroad and is expected to close within 12 to 18 months if approved. Netflix prevailed over Paramount Skydance and Comcast after a bidding war. Less valuable remaining TV assets will be spun out. An Integration Office will coordinate planning between the companies consistent with regulatory requirements. Until closing, the companies will operate separately and all interactions must flow through the Integration Office.

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