Netflix has announced its acquisition of Warner Bros, including HBO Max and HBO. The decision was made after a tense bidding round that also involved giants Paramount and Comcast. The Wall Street Journal reported on December 5.
According to sources, Netflix has offered to buy the assets mostly for cash. If the deal goes through, it would be the largest acquisition in the history of the streaming service, which is seeking to strengthen its library with franchises such as “Harry Potter” and “Superman” and hits of the caliber of “Game of Thrones”.
The scheme of the deal involves a complex restructuring:
- Warner Bros. Discovery plans to split into two separate companies.
- The first company will combine studio assets and streaming (HBO Max); Netflix is buying it.
- The second company will take over the management of linear cable networks (CNN, TNT, TBS).
An official announcement about the deal is expected in the near future.
Rivals warn that the Netflix deal may “never close” due to potential regulatory vetoes. A takeover of HBO Max by market leader Netflix would create a player with excessive power in the streaming market, a development already causing concern in Washington.