Netflix buys Warner Bros Discovery as HBO Max remains standalone.
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FOLLOWING Netflix’s historic announcement that it would be taking over Warner Bros Discovery in a €71.2 billion move on Friday, December 5, the CEO and President of Warner Bros Discovery, David Zaslav, has clarified that HBO Max users will have the option to keep the platform without subscribing to both services.
CEO of Warner Bros Discovery: “HBO Max will remain”
According to Zaslav in a meeting with employees, the platform will remain an independent service even after the acquisition. During the meeting, he assured both employees and consumers that “HBO Max will remain” and that “anyone who has Netflix and HBO Max will have a better experience. For people who only want HBO Max, they will be able to get it.”
Netflix’s acquisition of Warner Bros Discovery includes the Warner Bros. studio, HBO and HBO Max, and is expected to fully close within 12 to 18 months. According to rumours from sources close to Netflix, their strategy indicates that Netflix and HBO Max will operate as separate brands and services, in line with the clarification by Zaslav.
HBO Max, undergoing constant changes and reorganisations
However, Zaslav, who is poised to become a billionaire after the acquisition, will not have control over the company once the move is complete. Netflix would hold the power to implement changes to the strategy as Warner Bros Discovery’s assets are absorbed. Consumers, as well as employees, will need to wait and see how changes progress as the acquisition process is completed.
As it stands, HBO Max has gone through a series of changes and reorganisation, both in name and ownership, providing difficulty for the employees working there. For them, the only constant factor has been change.
A historic move to create one of the most extensive entertainment libraries
Netflix’s acquisition of Warner Bros Discovery has made history as one of the most significant corporate moves in the history of streaming. The merging of the two highly influential media empires would create one of the most extensive joint entertainment libraries ever made. Warner’s iconic titles include The Big Bang Theory, The Sopranos, Game of Thrones, The Wizard of Oz, and the DC Universe; Netflix is a titan of streaming with countless iconic titles, including Squid Game, Money Heist, Bridgerton and Stranger Things.
Paramount Skydance, led by David Ellison, had also been in the race for the Warner Bros acquisition, having previously attempted to buy the company in October with an offer of approximately 60 billion dollars (€51.2 billion). In the end, Netflix offered 27.75 dollars (23.68 euros) per share, representing a premium of nearly 12 per cent on the closing price.
According to expert analysts, the deal will not dramatically enlarge Netflix’s worth … However, it will make it much more competitive against streaming giant rivals Disney+ and Amazon Prime Video.
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