- Netflix fends off competition from Comcast and Paramount
- Streamer gains access to films and tv shows as well as HBO Max
- TNT Sports US and Eurosport will join new broadcasting arm
Netflix has agreed a US$82.7 billion deal to acquire Warner Bros Discovery’s (WBD) studio and streaming business.
The transaction, which is expected close next year, does not include WBD’s broadcast arm, which will be spun off into a separate entity.
Discovery Global Networks will house TNT Sports and Eurosport in Europe. It will also control CNN, Bleacher Report, and a host of other pay-TV and free-to-air channels across the globe. The company will also retain the Discovery+ streaming service.
However WBD said earlier this year that TNT Sports in the UK and Latin America would be part of the Studio and Streaming business that Netflix is acquiring. If this remains the same, then Netflix could own several major sports broadcasters – and raises the prospect of TNT Sports UK being part of Netflix, if it isn’t sold.
Netflix has pledged to continue WBD’s operations, including HBO Max, strengthening its business with a large library of content, new production capabilities, and the ability to offer a wider range of price points to consumers.
“Our mission has always been to entertain the world,” said Ted Sarandos, co-chief executive of Netflix. “By combining Warner Bros’ incredible library of shows and movies – from timeless classics like Casablanca and Citizen Kane to modern favorites 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.”
“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,” said David Zaslav, chief executive of WBD. “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.”
WBD put itself up for sale in Octoberwith the company noting it had received ‘unsolicited interest’ from multiple parties.
Comcast and Paramount are also understood to have made offers. Paramount’s bid was believed to be for the entire business and would have seen a significant merger of sports broadcasting assets.
