'Huge win': Netflix to own The Sopranos, Game of Thrones and Harry Potter under $72bn Warner Bros deal
Netflix has agreed to buy Warner Bros Discovery film and TV studios business in a $72 billion (£54 billion) deal.
The US streaming giant confirmed the deal on Friday after it had emerged as the front-runner to buy the business, which owns franchises such as Harry Potter and Batman, following an auction process.
Netflix said the deal “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”.
It had battled with Paramount Skydance and Sky owner Comcast to buy the studio business, which also runs HBO and fellow streaming service HBO Max.
It means popular franchises, shows and movies such as The Big Bang Theory, The Sopranos, Game of Thrones, The Wizard of Oz and the DC Universe currently controlled by Warner Bros will join Netflix's extensive portfolio including Wednesday, Money Heist, Bridgerton, Adolescence and Stranger Things.
The deal is expected to take between a year and 18 months to be completed.
Netflix said the takeover will provide “more choice and greater value for consumers”.
A spokesperson said: “Netflix expects to maintain Warner Bros.' current operations and build on its strengths, including theatrical releases for films.
“By adding the deep film and TV libraries and HBO and HBO Max programming, Netflix members will have even more high-quality titles from which to choose. This also allows Netflix to optimize its plans for consumers, enhancing viewing options and expanding access to content.”
The deal could dramatically further reshape the established Hollywood film and TV industry, which has already faced significant upheaval amid the rapid growth of streaming.
Netflix said it will pay 27.75 dollars (£20.79) per share to investors in the Warner Bros Discovery business.
The deal will close after Warner Bros Discovery completes a proposed spin-off of its cable channels, which include CNN, TBS and TNT Sports in the UK.
Ted Sarandos, co-chief executive of Netflix, said: “Our mission has always been to entertain the world. By combining Warner Bros’ incredible library of shows and movies — from timeless classics like Casablanca and Citizen Kane to modern favourites 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.
“Together, we can give audiences more of what they love and help define the next century of storytelling.”
David Zaslav, president and chief executive of Warner Bros Discovery, said: “Today’s announcement combines two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most.
"For more than a century, Warner Bros has thrilled audiences, captured the world's attention, and shaped our culture. By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world's most resonant stories for generations to come."
Danni Hewson, AJ Bell head of financial analysis, said: “For Netflix, the benefits are obvious. Adding the likes of Game of Thrones, Harry Potter and the DC Universe to its roster of content is a huge win, as is snapping up all those streaming subscribers that currently plump for HBO Max.
“Netflix has offered an olive branch to a nervous Hollywood, with promises to keep releasing Warner Bros studio films on the big screen. It might be a streaming behemoth but it’s also a disrupter, a relatively new kid on the block that was once looked down on by the boss of the very studio it’s now going to own.
“Netflix is a business that grew out of good old-fashioned movie watching via a mail order DVD service. It understands entertainment and how best to capitalise on its estate and has taken a great deal of notice of how those legacy giants do business, even if it puts its own unique spin on things. It’s branching out into theme parks, covets those little gold Oscar statues, and it wants to do what every industry insider wants – to entertain its audience, no matter how they choose to view.
“Splashing out so much cash was never going to make the share price jump with delight, but if this deal can clear those significant regulatory hurdles quickly there are likely to be considerable cost savings to be made. How much of those savings get passed to streaming platform subscribers or whether Netflix will be seen to have too much pricing power is one of the areas that will face a huge amount of scrutiny in the coming months.”