Netflix is officially buying Warner Bros. in whopping $82.7 billion deal

Netflix has always been a titan in the entertainment industry, but it’s about to become an even bigger wave maker in the industry. 

After emerging as the frontrunner in the bidding war, Netflix has officially agreed to buy Warner Bros. in a deal that is valued at an astounding $82.7 billion. 

“I know some of you are surprised that we’re making this acquisition, and I certainly understand why. Over the years, we have been known to be builders, not buyers,” Netflix co-CEO Ted Sarandos told Wall Street analysts on a conference call December 5 (h/t The Hollywood Reporter). "We already have incredible shows and movies and a great business model, and it’s working for talent, it’s working for consumers and it’s working for shareholders, but this is a rare opportunity and it’s going to help us achieve our mission to entertain the world and to bring people together through great stories.

Sarandos’ sentiments were shared by Warner Bros. Discover CEO David Zaslav who celebrated the union of the two great storytelling companies and the impact this deal will have in bringing the world more of the entertainment they love. 

“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,” said David Zaslav, CEO of Warner Bros. Discovery. “For more than a century, Warner Bros. has thrilled audiences, captured the world’s attention, and shaped our culture. By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come.”

Addressing the cinematic-sized elephant in the room, Netflix in a statement assured cinema fans that it “expects to maintain Warner Bros.’ current operations” and use this new deal to  “build on its strengths, including theatrical releases for films.”

Netflix also attempted to ease the minds of filmmakers and creatives within the industry, who are understandably uncertain about what impact this deal will have. In a statement, Netflix proclaimed that, “by uniting Netflix’s member experience and global reach with Warner Bros.’ renowned franchises and extensive library, the Company will create greater value for talent — offering more opportunities to work with beloved intellectual property, tell new stories and connect with a wider audience than ever before.”

The megadeal creates a lot of questions about what the future will hold, particularly when it comes to Warner Bros. Discovery's streaming platform, HBO Max. At this time, Netflix has signaled plans to keep HBO Max as its own separate brand; however, it does seem that there are plans for HBO and HBO Max content to come to Netflix.

While the sale has been made, there is still a long road ahead for Netflix before the deal is officially finalized -- at which point we'd likely begin to see bigger moves regarding content being made. As Variety reports 'the deal is contingent on the completion of the spin-off of Discovery Global as well as regulatory approvals, the approval of the deal by WBD shareholders and other 'customary closing conditions'' Variety notes there is also the potential hurdle of overcoming antitrust issues.

We'll have to wait to see how things play out in the months ahead, but this deal could be a game changer for Netflix and the millions of subscribers worldwide.