Netflix agrees to buy Warner Bros in $83 billion deal to create massive streaming empire

We have a winner in the bidding war for Warner Bros-Discovery.

Netflix is in final talks to buy Warner's film and TV studios, plus its streaming assets and some debt, in a deal worth nearly $83 billion.

Where things stand

In a statement Friday, Netflix said the two entertainment giants had "entered into a definitive agreement under which Netflix will acquire Warner Bros., including its film and television studios, HBO Max and HBO." The announcement caps what had been a closely watched bidding war in Hollywood that involved top competitor Paramount.

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The deal would be valued at $82.7 billion, or an "equity value of $72.0 billion," the streaming giant said.

“Our mission has always been to entertain the world,” Ted Sarandos, co-CEO of Netflix, said in a statement. “By combining Warner Bros.’ incredible library of shows and movies — from timeless classics like Casablanca and Citizen Kane to modern favorites 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.”

The deal would give Netflix one of Hollywood's most valuable libraries, including the Harry Potter, Game of Thrones, and the DC Comics properties.

A mixed reaction

The Directors Guild of America told Variety that the deal "raises significant concerns."

“The news that Netflix had secured exclusive rights to negotiate for WBD raises significant concerns for the DGA,” the guild said. “We believe that a vibrant, competitive industry — one that fosters creativity and encourages genuine competition for talent — is essential to safeguarding the careers and creative rights of directors and their teams."

For its part, Netflix said in it's statement that it "expects to maintain Warner Bros.’ current operations and build on its strengths, including theatrical releases for films."

What's next

The deal still has to clear regulatory and other hurdles, and would likely take around a year to close.