Netflix strikes £54bn deal to buy Warner Bros studios

By Henry Saker-Clark, PA Deputy Business Editor

Netflix has agreed to buy Warner Bros Discovery film and TV studios business in a $72 billion deal.

The US streaming giant confirmed the deal on Friday after it had emerged as the front-runner to buy the business, which owns franchises such as Harry Potter and Batman, following an auction process.

It had battled with Paramount Skydance and Sky owner Comcast to buy the studio business, which also runs HBO and fellow streaming service HBO Max.

The deal could dramatically further reshape the established Hollywood film and TV industry, which has already faced significant upheaval amid the rapid growth of streaming.

Netflix said it will pay 27.75 dollars per share to investors in the Warner Bros Discovery business.

The deal will close after Warner Bros Discovery completes a proposed spin-off of its cable channels, which include CNN, TBS and TNT Sports in the UK.

Ted Sarandos, co-chief executive of Netflix, said: “Our mission has always been to entertain the world.

“By combining Warner Bros’ incredible library of shows and movies — from timeless classics like Casablanca and Citizen Kane to modern favourites like Harry Potter and Friends — with our culture-defining titles like Stranger Things, KPop Demon Hunters and Squid Game, we’ll be able to do that even better.

“Together, we can give audiences more of what they love and help define the next century of storytelling.”

David Zaslav, president and chief executive of Warner Bros Discovery, said: “Today’s announcement combines two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most.”