Netflix will acquire Warner Bros., gaming segment and HBO

Netflix and Warner Bros. Discovery announced an agreement on Friday that will see the streaming giant acquire Warner Bros.

As part of the deal, Netflix will get Warner Bros.’ film and TV studios, including HBO Max and HBO, as well as Warner Bros. Games. The deal has a total enterprise value (including debt) of about US$82.7 billion (roughly CA$114.8 billion) and an equity value of US$72 billion (approximately CA$99.9 billion). Variety reports the deal came after a weeks-long bidding war with Paramount Skydance and Comcast.

In a release about the deal, Netflix said it “expects to maintain Warner Bros.’ current operations and build on its strengths, including theatrical releases for films.” Variety noted that Warner Bros. has deals to release films in theatres through 2029.

Moreover, Netflix indicated it would keep the HBO Max streaming service around, at least in the short term, while also adding HBO and HBO Max content to its own platform. It remains to be seen how this will impact Canadians, given a lot of HBO content is currently available on Bell’s Crave service north of the border.

As for gaming, a Warner Bros. Discovery spokesperson confirmed to Game Developer that the company’s gaming division was included in the transaction. Warner Bros. Games includes studios like NetherRealm (Mortal Kombat), Rocksteady (Batman: Arkham), and TT Games, which makes many of the Lego video games.

The gaming portion of the acquisition is notable, given Netflix’s attempts to break into gaming. In recent years, the company has offered some games as part of its subscription, including tie-ins to some of its popular content as well as titles from other studios. However, Netflix’s announcement focused squarely on the movies and TV portion of Warner Bros., so it’s not yet clear what — if any — impact the Warner Bros. Games acquisition will have.

The deal is contingent on the spin-off of Discovery Global, and will also need regulatory approval. The agreement also stipulates Netflix must pay Warner Bros. a breakup fee of US$5.8 billion (CA$8 billion) if the deal fails to close under certain circumstances.

Netflix said in its release that the deal would lead to a “stronger entertainment industry,” but as we’ve seen time and again with massive acquisitions like this, it seldom makes the industry stronger. Constant media mergers and acquisitions in the U.S. have led to media control concentrated in the hands of a few giants, tons of layoffs, and more.

The Discovery Global spin-off is expected to wrap up in Q3 2026, with the Netflix deal to close after.

Source: Netflix Via: Variety, Game Developer