Netflix blose to buying Warner Bros as massive $82.7b is tabled
The world of entertainment has been an industry so many people look to invest in as countless homes and centres view movies as their business attraction daily.
It is no news that Warner Bros. has been one of the major movie production companies, specialised in producing all kinds of movies series, cartoons, documentaries of any kind, in recent decades.
But the story is about to change as Netflix is on the verge of acquiring the giant movie company with preparation to table a bid worth $82.7b is on the card.
Netflix, with its online movie streaming, is looking to expand its production prowess by purchasing Warner Bros. to put itself on the global level as one of the movie production giants in the 21st Century.
Netflix has struck a deal to buy Warner Bros. including its film and television studios HBO and HBO Max, for a reported $82.7 billion.
Acquiring Warner Bros. simply means, to Netflix, that fan-franchise, consisting Game of Thrones, The Sopranos, Harry Potters, and the DC universe will now be under the command of or join portfolio of Netflix.
Here is the genesis of the deal. A proposal was sent to Warner Bros. employees which stated that the deal would be subject to various conditions, with the completion of Discovery Global and Warner Bros. Discovery.
“This decision reflects the realities of an industry undergoing generational change – in how stories are financed, produced, distributed, and discovered – and recognizes the strong, transformed company we are today,” the memo read in segment.
The memo, which includes about $10 billion in debt, with an equity value of $72 billion─is not expected to end before the third quarter of 2026, when the Discovery Global separation is about to be completed.
It is yet to be understandable what adverse effects it would have on the customers when the deal closes.
Netflix hopes that the acquisition of the movie production company is done as soon as possible to ensure proper handing over after a deal is struck.
“Our mission has always been to entertain the world,” said Ted Sarandos, co-CEO of Netflix said in a statement.
“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, he continued.
“Together, we can give audiences more of what they love and help define the next century of storytelling.”
David Zaslav, Warner Bros. CEO, who sent a memo to WBD staffers this morning (Friday morning), explained the nitty gritty of the deal, disclosed in an official statement that the merger “combines two of the greatest storytelling companies in the world” to bring more options to consumers.
“For more than a century, Warner Bros. has thrilled audiences, captured the world’s attention, and shaped our culture, he added.
“By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come.”
Successful acquisition of Warner Bros. by Netflix comes after a tight and bitter bidding war which turned WBD against David Ellison’s Paramount Skydance and Comcast, known as the home of NBCUniversal.
At the inception, findings were made when glittering letters were sent to Zaslav this week revealing the process of the deal, stating that it had become “tilted and unfair” following Warner Bros.’ request second-round bids from another bidder who was also looking to buy some or all of the Warner Bros. assets.
Aside Paramount and Netflix, Comcast─the corporation which owns NBCUniversal─also registered interests in acquiring or merging with Warner Bros.
“It has become increasingly clear, through media reporting and otherwise, that WBD appears to have abandoned the semblance and reality of a fair transaction process, thereby abdicating its
duties to stockholders, and embarked on a myopic process with a predetermined outcome that favors a single bidder,” the letter from attorneys at Quinn Emanuel states, which CNBC published in
“We specifically request and expect this letter will be shared and discussed with the full board of directors of WBD.”
The memo to Zaslav and the WBD board of directors comes on the feet of several reports that Netflix’s proposed acquisition of WBD’s studios and streaming section would likely miniaturise streaming costs for consumers by utilising Netflix’s app with HBO Max.
“In recent talks with Warner Bros Discovery, Netflix said the potential combination of its streaming service with HBO Max would benefit consumers by lowering the cost of a bundled offering,” Reuters noted, adding that the vast majority of Netflix users also subscribe to WBD’s streaming service.
In a few days we shall all know what comes out of this deal as Netflix seriously is in the pole position to acquire Warner Bros. as confirmed by reports from close sources.
The possible purchase might include total acquisition or merger as the details are yet to be out. It can also be remembered that there are also other suitors interested in purchasing the giant studio.
Few days ago, Warner Bros. looked to invite a bid from another suitor who could also take full or part-ownership of the production company.
The deal might not fully be struck by Netflix as Warner Bros. might resort to making purchase of its elegant studio a case of highest bidder.
The question consumers and movie lovers are asking is: “Will Netflix succeed in acquiring Warner Bros.?
