Netflix buys Warner Bros. for $82.7B

Netflix announced it has purchased Warner Bros. in an $82.7 billion deal.

The agreement includes HBO Max, HBO, and DC Comics along with the film and television studios.

The streaming company announced the news on Friday morning, saying, "This acquisition brings together two pioneering entertainment businesses, combining Netflix’s innovation, global reach and best-in-class streaming service with Warner Bros.’ century-long legacy of world-class storytelling."

This is the largest acquisition by Netflix, The New York Times reported.

The agreement was approved unanimously by the Boards of Directors of both Netflix and Warner Bros. Discovery. The deal will be finalized when Warner Bros. completes the separation of Discovery Global from the main group, and federal regulators give their approval. It should take 12 to 18 months, Netflix said.

“This acquisition will improve our offering and accelerate our business for decades to come,” Netflix co-CEO Greg Peters said in a news release. “Warner Bros. has helped define entertainment for more than a century and continues to do so with phenomenal creative executives and production capabilities. With our global reach and proven business model, we can introduce a broader audience to the worlds they create—giving our members more options, attracting more fans to our best-in-class streaming service, strengthening the entire entertainment industry and creating more value for shareholders.”

Paramount, Comcast and Netflix had all been in a bidding war for Warner Bros., with the streaming service coming out on top after offering mostly cash.

Comcast wanted Warner Bros. Discovery and HBO Max, while Paramount wanted the entire thing, including CNN and TNT, The New York Times reported.

Netflix said it will maintain Warner Bros.’ current operations and will build on WB’s theatrical releases.

It will give more choices for consumers by adding the film and TV libraries for Netflix subscribers, while at the same time, allowing Netflix to expand its production capacity.

As part of the agreement, Warner Bros. shareholders will get $23.25 in cash and $4.50 in Netflix stock for every share they own in WB.