Netflix Acquires Warner Bros for 72 Billion Dollars... Embracing Movies and HBO

Global number one streaming platform Netflix has successfully completed a 'deal of the century' that will shake up the media industry by acquiring the core business divisions of Hollywood traditional powerhouse Warner Bros. Discovery (hereinafter Warner Bros.).

Netflix announced on the 5th (local time) that it has signed a final contract to acquire Warner Bros. for 72 billion dollars (approximately 106 trillion won).

With this deal, Netflix will secure Warner Bros.' movie and TV production studios and the premium streaming service 'HBO Max'.

Warner Bros. plans to complete the corporate division process of its cable broadcasting sector, including CNN, TNT, and the Discovery Channel, by the third quarter of next year, before the completion of the share sale. This is in accordance with the corporate division plan announced last June.

Netflix expects that the merger and acquisition process will take 12 to 18 months to finalize.

Warner Bros. is a company formed by the merger of WarnerMedia and Discovery in 2022, holding various media assets including movie and TV production studios, HBO Max, CNN, TNT, and Discovery.

Once this integration is completed, a major transformation across the entertainment industry is expected as the world's largest streaming service combines with a leading Hollywood production company.

The vast movie and TV library and HBO content owned by Warner Bros. are expected to be integrated into the Netflix platform, significantly expanding the content choices for subscribers.

The acquisition of Warner Bros.' Hollywood studio will greatly enhance Netflix's own content production capabilities.

Netflix stated, "We will maintain and develop Warner Bros.' operational methods and strengths, and continue the theatrical releases of Warner Bros. films as they are."

Ted Sarandos, co-CEO of Netflix, emphasized, "From immortal masterpieces that transcend eras like 'Casablanca' and 'Citizen Kane' to modern hits like 'Harry Potter' and 'Friends', Warner Bros.' excellent content assets will meet Netflix's iconic works like 'Stranger Things', 'K-Pop Demon Hunters', and 'Squid Game', making it easier to achieve our goal of entertaining the world."

However, there remains the challenge of passing strict corporate merger reviews by competition authorities in various countries for the finalization of the deal.

The Wall Street Journal reported that concerns have been raised in Washington, D.C. that the merger could excessively strengthen Netflix's dominance in the streaming market.

Paramount Skydance, which participated in this acquisition battle, warned in a letter sent to Warner Bros. that considering Netflix's global market dominance, there is a possibility that the deal may not be completed due to regulatory issues in the U.S. and abroad.

In addition to Netflix, major media companies such as Paramount and Comcast also participated in the Warner Bros. acquisition battle.

Paramount strongly protested to Warner Bros. that the sale process was conducted favorably for Netflix from the beginning.