It’s now official. Netflix is set to take control of Warner Bros Discovery (WBD) in a massive takeover that could be valued as high as US$82.7 billion (~RM339.9 billion). The streaming service outbid rivals including Comcast and Paramount Skydance after a weeks-long contest, ultimately securing Warner Bros’ film, TV and streaming operations, including HBO, HBO Max and Warner Bros’ century-old studio.

Netflix co-chief executive Ted Sarandos described the acquisition as a rare chance to reshape the future of storytelling. He said the company wants to pair WBD’s iconic franchises with Netflix’s own global hits. He added that the combined catalogue would give viewers more of what they already love while helping the company define entertainment for the next century.

The deal gives Netflix control of one of Hollywood’s most valuable libraries, spanning decades of films and series. The company offered roughly US$27.75 (~RM114) per WBD share, which brings its equity value to about US$72 billion (~RM295.9 billion) and its overall enterprise valuation to US$82.7 billion (~RM339.9 billion) when debt is included. Both companies’ boards approved the agreement unanimously.

Warner Bros will continue releasing films in cinemas, and its television studio will remain free to produce shows for third-party platforms. Netflix, meanwhile, will continue developing originals exclusively for its own service.

Sarandos acknowledged that the acquisition may have surprised shareholders but framed it as a long-term play to strengthen Netflix’s position “for decades to come.” WBD chief executive David Zaslav echoed the sentiment, calling the merger a joining of “two of the greatest storytelling companies in the world.” However, the deal still hinges on regulatory approval, but Netflix says it is “highly confident” it will clear those hurdles.

Additionally, Netflix will only close the acquisition after Warner Bros completes a planned split of its business next year. The company will separate its global networks arm, which includes CNN, TNT Sports in the US and Discovery’s European channels, into a new entity called Discovery Global. The film, TV and streaming operations will then transfer to Netflix, while TNT Sports International remains with the division being sold.

According to the BBC, some in the film industry have criticised the agreement. The Writers Guild of America’s East and West branches warned that the merger could eliminate jobs, suppress wages, and reduce content diversity. Cinema United’s chief executive Michael O’Leary argued that the deal threatens cinemas worldwide, from major multiplexes to independent one-screen theatres.

(Source: Netflix [official website] / BBC)