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Netflix has agreed to acquire the TV and film studios as well as the streaming division of Warner Bros. Discovery (WBD) — a deal worth 72 billion dollars in equity value. 

With this move, Netflix gains control of some of Hollywood’s most beloved and valuable brands and franchises, including Game of Thrones, the DC Comics universe and Harry Potter. Netflix will also take over HBO Max.

The transaction is a mix of cash and shares. For each WBD share, WBD shareholders will receive 23.25 dollars in cash plus 4.50 dollars in Netflix shares.

The deal will not be completed until WBD spins off its global networks division — the cable channels and news/sports networks — into a separate listed company, to be called Discovery Global. That spin-off is scheduled for the third quarter of 2026. 

According to Netflix, the takeover combines its global reach and streaming service with the heritage of Warner Bros.

The US Department of Justice can still block the acquisition. The concern is that a merger of Netflix and HBO Max – both leading streaming services – would create an overly dominant player in the streaming market. Critics warn that this could seriously harm competition, as the combined service would become so large that the range of content and choices available to consumers risks being curtailed.

© The Content Exchange, source News