Netflix to buy Warner Bros film studios, streaming unit for $93b

Netflix has agreed to buy Warner Bros Discovery’s TV and film studios and streaming division for US$72 billion (S$93.3 billion), a deal that would hand control of one of Hollywood's most prized and oldest assets to the streaming pioneer that has upended the media industry.

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The agreement — announced on Dec 5 — follows a weeks-long bidding war. Netflix seized the lead with an offer of nearly US$28 a share that eclipsed Paramount Skydance’s nearly US$24-a-share bid for the whole of Warner Bros Discovery, including the cable TV assets slated for a spin-off.

Warner Bros Discovery shares closed at US$24.5 on Dec 4, giving it a market value of US$61 billion.

Buying the owner of marquee franchises that include Game Of Thrones, DC Comics and Harry Potter will further tilt the power balance in Hollywood in favour of the streaming giant, which built its dominance without major acquisitions or a large content library.

The acquisition will help Netflix’s efforts to ward off competition from Walt Disney and the Ellison family-backed Paramount.

“Together, we can give audiences more of what they love and help define the next century of storytelling,” Netflix co-chief executive officer Ted Sarandos said in a statement.

But the deal is likely to face strong antitrust scrutiny in Europe and the US as it would give the world’s biggest streaming service ownership of a rival that is home to HBO Max and boasts nearly 130 million streaming subscribers.