Jakarta, hitclubapk3 Indonesia
—
Streaming service
Netflix
bought Warner Bros. film and television studio
Discovery Inc (WBD) with a value of up to US$82.7 billion or around IDR 1,380 trillion.
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This cash and stock transaction is valued at $27.75 per WBD share.This purchase is also the largest merger in the world of entertainment.
Netflix CEO Ted Sarandos said the acquisition would give viewers more choices.
“By combining Warner Bros’ incredible collection of shows and films, we will be able to do even better,” said Ted on Friday (5/12), in an official release
Netflix
.
He then said, “Together, we can give audiences more of what we love and help define the next century of storytelling.”
This acquisition gives Netflix access to a wider film catalog and the prestigious streaming service HBO Max.
For decades, Warner Brothers has produced classics including “Casablanca” and “Citizen Kane,” as well as recent blockbusters such as “The Sopranos,” “Game of Thrones” and the “Harry Potter” films.
Meanwhile, Warner Brother CEO and President David Zaslav said this merger could be extraordinary.
“Today’s announcement brings together two of the world’s greatest storytelling companies,” said Zaslav.
The purchase represents the biggest entertainment industry consolidation in decades.
Previously, Disney held the largest merger after acquiring Fox for US$72.2 billion in 2019.
Despite the large amount, Netflix’s acquisition of Warner Bros. has drawn criticism.
Top Hollywood film industry players have voiced their desire that Warner Bros. does not end up in the hands of Netflix.
They are concerned that streaming companies largely want to limit the release of their films in theaters.
Meanwhile, research director at trading and investment firm XTB, Kathleen Brooks, warned of a number of potential problems surrounding the deal.One of them is Netflix’s monopoly after controlling the giant in the TV and film business.
Brooks expects political concerns given that a deal of this size would require regulatory approval from antitrust authorities in the US, and possibly elsewhere.
“Netflix is trying to dominate Hollywood,” he said, quoted by AFP.
Warner Bros. Discovery was initially targeted by Paramount, which was recently acquired by the family of billionaire Oracle founder Larry Ellison, one of the world’s richest men and an ally of US President Donald Trump.
Netflix has joined Paramount Skydance and Comcast, owner of NBCUniversal, in the second round of auctions negotiated throughout the US Thanksgiving period.
(isa/bac)
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