Netflix announced the deal to acquire Warner Bros. This deal will cost $82.7 billion. This announcement came following the separation of Discovery Global.
Warner Bros. Discovery Global equity value is $72 billion. Netflix will pay $82.7 billion of its enterprise value to fully acquire the Warner Bros. Discovery Studio’s streaming services. This deal makes Netflix the sole owner of Warner Bros. movies and streaming businesses.
Here is everything about the Netflix-Warner Bros. Discovery deal and its benefits for users.
Netflix Warner Bros. Discovery Deal:
Netflix is an American subscription-based streaming service. Warner Bros. is the media house that produces movies and TV series.
Warner Bros. owns hundreds of assets, which include studio facilities, digital networks, home entertainment, DC Studio, Geffen Pictures, Fandango, HBO Max, Cinemax, TNT Sports, etc.
Netflix will buy everything from Warner Bros., including its global linear networks.
Netflix Warner Bros. Discovery Deal Cost:
Netflix will spend $82.7 billion to own Warner Bros. Netflix will get a competitive edge after buying Warner Bros.
The cost is in billions; Netflix is looking for greater results. It will own one of its biggest competitors with all assets.
Warner Bros. Discovery shareholders will get $4.50 worth of Netflix stock and $23.25 in cash per share.
Netflix is supposed to save up to $3 billion annually.
Netflix-Warner Bros. Deal Benefits for Users:
It is likely known that owning Warner Bros. will enhance the streaming experience for Netflix users.
One Platform, More Entertainment:
Netflix will stream every Warner Bros. movie and TV show on its platform. It can charge an additional fee to offer Warner Bros. shows on the Netflix website and app.
Warner Bros. Movies on Netflix:
Netflix users will have access to all Warner Bros. movies, including Games of Thrones, the Harry Potter series, the Batman trilogy, The Hobbit series, The Lord of the Rings TV series, DC movies, the Matrix series, the Sherlock Holmes series, the Terminator movie series, etc.
Warner Bros. TV Shows on Netflix:
Netflix will also stream Warner Bros. TV shows such as Euphoria, Friends, Game of Thrones, Gilmore Girls, Gossip Girl, Rick and Morty, Succession, The Big Bang Theory, The Wire, Stranger Things, and more.
Why Did Netflix Purchase Warner Bros.?
Blockbuster and Academy Award-Worthy Entertainment:
Netflix is the biggest streaming platform. It also produces TV shows and movies. Yet it has failed to produce a blockbuster movie. Netflix shows never received a single Academy Award.
On the other hand, Warner Bros. is known for producing blockbuster and Academy Award-worthy entertainment.
Netflix acquires Warner Bros. to reach the big screen. It will also stream Warner Bros. movies and TV shows on the Netflix app.
More Subscribers:
Netflix will also get 128 million HBO subscribers to its platform. This way it will have 428 million subscribers worldwide.
Concerns over Netflix-Warner Bros. Deal:
Theaters:
Theaters are concerned about the movies they are running on their big screens.
The Netflix-Warner Bros. deal gives Netflix control to pull out any movies from theaters and release them on the Netflix platform without worries.
Control over Competition:
With this deal Netflix will own 50% of the streaming market.
It will give Netflix more control over what to release for users and what not. Users will have less choice.
Future of HBO Max:
In the letter to subscribers, Netflix clarified that HBO Max will work separately.
After the completion of the deal, Warner Bros. content will be available for Netflix users.
Conclusion:
The Netflix-Warner Bros. deal will make Netflix the biggest and most dominant streaming platform. It will own half of the streaming market with 480 million users.
Warner Bros. users will shift to Netflix and get access to both Netflix and Warner Bros. Discovery content on a single platform. Netflix published this announcement on its platform.
FAQs:
Why Does Netflix Want Warner Bros.?
Netflix wants to expand its services beyond streaming. Warner Bros. controls the massive big-screen entertainment. Netflix’s ownership over Warner Bros. will give it easy access to the big screen.
Can I watch Games of Thrones on Netflix?
Once the Netflix-Warner Bros. deal is complete, it will give Netflix users access to watch Warner Bros. movies and TV shows online. The Game of Thrones series is likely to come to Netflix.
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