Netflix to absorb Warner Bros. and HBO in $82.7 billion deal

Netflix announced Friday that it will seek to acquire Warner Bros., HBO, HBO Max and related studios from Warner Bros. Discovery in a deal valued at $82.7 billion. The merger is expected to take 12 to 18 months, the company said.

Netflix said the pending merger would allow it to expand its content library and increase theatrical film releases. In addition to offering more titles to subscribers, the company said the deal would provide a larger studio footprint and boost investment in original programming.

“This acquisition will improve our offering and accelerate our business for decades to come,” co-CEO Greg Peters said. “Warner Bros. has helped define entertainment for more than a century and continues to do so with phenomenal creative executives and production capabilities. With our global reach and proven business model, we can introduce a broader audience to the worlds they create — giving our members more options, attracting more fans to our best-in-class streaming service, strengthening the entire entertainment industry and creating more value for shareholders.”

Netflix estimates the merger would save the combined companies $2 billion to $3 billion annually by the third year.

What this means for consumers remains unclear. According to Pew, Netflix is the United States’ most popular streaming service, with 72% of Americans saying they have watched Netflix programming. HBO Max is tied for being the sixth-most popular streaming service in the U.S., with 41% of Americans saying they have viewed programming.