Hollywood shakeup: Netflix eyes Warner Bros acquisition

Netflix's $27.75 a share bid tops Paramount's offer

- REUTERS

Netflix Friday agreed to buy Warner Bros Discovery's TV, film studios and streaming division for $72 billion, a deal that would hand control of one of Hollywood's most prized and oldest assets to the streaming pioneer.

The deal represents a dramatic plot twist for Netflix, which rewrote the Hollywood script, upending how and when consumers watch movies and television shows. Suddenly, it has become the thing it disrupted - a mainstream studio.

“I know some of you are surprised that we're making this acquisition - and I certainly understand why," Netflix Co-CEO Ted Sarandos said on a call with investors. "Over the years, we have been known as builders, not buyers ... but this is a rare opportunity that's going to help us achieve our mission to entertain the world, and bring people together through great stories.”

The agreement follows a weeks-long bidding war in which Nettlix offered nearly $28 per share, eclipsing presumed front-runner Paramount Skydance, which made a series of unsolicited bids to acquire all of Warner Bros Discovery, including the cable TV assets slated for a spinoff.