_updates.jpg)
Netflix and Warner Bros. Discovery have reached a major agreement, set to reshape Hollywood significantly.
On Friday morning, December 5, Netflix agreed to buy the TV and movie studio and assets, including the HBO Max streaming service, for approximately $82.7 billion, with an equity value of $72 billion, in a mega entertainment deal.
The announcement came after a week-long bidding war that pitted the streaming giant against David Ellison's Paramount Skydance and Comcast.
"I know some of you are surprised we are making this acquisition," Netflix co-CEO Ted Sarandos said on a call with analysts Friday.
He said that by combining the library of Warner Bros shows and movies with the streaming platform's series, "we can give audiences more of what they love and help define the next century of storytelling."
"Warner Bros have defined the last century of entertainment, and together we can define the next one," he said.
Asked whether HBO should remain a separate streaming service, co-chief executive Greg Peters said Netflix believed the HBO brand was important for consumers but added, "We think it's quite early to get into the specifics of how we're going to tailor this offering for consumers."
Moreover, films made by Warner Bros will continue to be launched in cinemas, and the television studio will continue to be able to produce for third parties, while Netflix will keep producing content exclusively for its own platform.
