In brief
Netflix will acquire Warner Bros' film and streaming businesses in a deal worth $72 billion, edging out competitors like Comcast and Paramount. This acquisition, which includes popular franchises like Harry Potter and Game of Thrones, is expected to generate significant savings and expand Netflix’s original content capabilities. Regulatory approval is still pending.
Netflix has agreed to buy the film and streaming businesses of Warner Bros Discovery for $72bn (£54bn) in a major Hollywood deal.
The streaming giant emerged as the successful bidder for Warner Bros ahead of rivals Comcast and Paramount Skydance after a drawn-out battle.
Warner Bros owns franchises including Harry Potter and Game of Thrones, and the streaming service HBO Max.
The takeover is set to create a new giant in the entertainment industry, but the deal will still have to be approved by competition authorities.
Netflix co-chief executive Ted Sarandos said the streamer was highly confident it would receive the regulatory approval it needs and it was running full speed towards this.
He said that by combining the library of Warner Bros shows and movies with the streaming platform's series such as Stranger Things, we can give audiences more of what they love and help define the next century of storytelling.
Netflix estimates it will find $2-3bn in savings, mostly through eliminating overlaps in support and technology areas.
The acquisition of Warner Bros is expected to enable Netflix to expand its studio production capacity and increase its investment in original content.
While the acquisition is hailed as a big day for both companies, analysts warn it may complicate the merging process due to the size and scope of the deal.
David Zaslav, president and chief executive of Warner Bros, added that the agreement combines two of the greatest storytelling companies in the world and aims to allow audiences to enjoy the world's most resonant stories for generations to come.
