Netflix has announced that it will indeed be purchasing Warner Bros., along with HBO and HBO Max, from Warner Bros. Discovery. The remaining parts of WBD are being spun off into the Discovery Global, which will be a new publicly traded company. Hollywood is concerned that Netflix may cost jobs and will shorten theatrical runs or eliminate them entirely.
According to a Netflix press release, the company will acquire these assets in a cash and stock transaction valued at $82.7 billion. The deal is set to be finalized by Q3 2026.
Not everyone is happy
This news comes after Paramount sent a letter to WBD CEO David Zaslav questioning the “fairness” of the process. In the letter, Paramount’s lawyers accuse WBD of having “abandoned the semblance and reality of a fair transaction process, thereby abdicating its duties to stockholders, and embarked on a myopic process with a predetermined outcome that favors a single bidder.”
It also discusses a meeting between WBD representatives and an EU Commission in Brussels, which allegedly wanted to stop Paramount from purchasing WBD.
Variety also reported on a letter sent to Congress from a “consortium of top industry players” urging them to stop the deal because “Netflix could stand to “destroy” the theatrical film marketplace by escalating or eliminating the amount of time Warner Bros. films would play in theaters before hitting a combined Netflix-HBO Max streaming platform.”
Netflix said it expects to release WBD films theatrically: “Netflix expects to maintain Warner Bros.’ current operations and build on its strengths, including theatrical releases for films.” Many believe they intend to shorten the theatrical window even more than Disney did to focus on building its streaming service by using the film studio assets.
Zazlav came from Discovery, which had also become a streaming service. Now he’s making a deal with Netflix, saying there is a generational shift in the way content is made and how consumers access it.
“This decision reflects the realities of an industry undergoing generational change – in how stories are financed, produced, distributed, and discovered – and recognizes the strong, transformed company we are today, the significant value we have created, and the resilience and attractiveness that now position us in a rapidly evolving marketplace.”
From what Netflix and Zazlav have said, it does sound like the purchase is being made to pad Netflix and focus on streaming, which could spell disaster for movie theaters.
Time will tell. But so far, the news has not done much to raise Netflix stock.
What do you think? Comment and let us know.
Pirates & Princesses (TM) (Stylized as PNP) is an independent, opinionated News and Information site focused on Travel, Entertainment, Fashion, the “Geek Girl” Lifestyle, and more. We focus heavily on Walt Disney World, Disneyland, Universal Orlando Resort, and other themed entertainment and travel destinations. Our news staff includes former theme park and entertainment industry employees, journalists and dedicated pop culture and theme park enthusiasts. Opinions expressed by contributors do not necessarily reflect the views of this site, our affiliates or our sponsors.