Netflix has struck a $72bn (£54bn) deal to acquire Warner Bros.' film and TV studios, creating a new media giant and potentially reshaping the world's theme park industry.
As part of the planned deal, Netflix would acquire Warner Bros. Discovery's HBO and HBO Max, adding intellectual properties like Harry Potter and Game of Thrones to its portfolio.
Additional franchises, shows and movies to join the Netflix portfolio would include The Big Bang Theory, The Sopranos, The Wizard of Oz, and the DC Universe.
"Our mission has always been to entertain the world," said Ted Sarandos, co-CEO of Netflix.
“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 transaction is expected to close after the completion of the previously announced separation of Discovery Global and Warner Bros Discovery, which is due to take place in the third quarter of 2026.
It is subject to required regulatory approvals, the approval of Warner Bros. Discovery shareholders, and other closing conditions.
Greg Peters, co-CEO of Netflix, said: "This acquisition will improve our offering and accelerate our business for decades to come."
He added, "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."
David Zaslav, president and CEO of Warner Bros. Discovery, said the proposed deal "combines two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most".
Deal to create new entertainment giant
How Netflix's acquisition of Warner Bros. will impact the latter's location-based entertainment (LBE) offering is uncertain at this point.
Warner Bros. licenses its name and characters to theme parks such as Warner Bros. Movie World in Australia and Warner Bros. World Abu Dhabi.
In addition, the company's Warner Bros. Discovery Global Experiences segment operates the Harry Potter studio tour studio tour attractions in Hollywood, London, and Tokyo.
Universal, which also bid for Warner Bros., collaborates with the company on LBE experiences including the Wizarding World of Harry Potter lands at Universal parks.
Additionally, Warner Bros. licenses its Looney Tunes and DC Comics franchises to Six Flags theme parks.
Netflix, meanwhile, has opened its first entertainment venue in Philadelphia, with its next Netflix House debuting in Dallas this week.
Images courtesy of Netflix and Warner Bros.
