While it will still face competition from Paramount Skydance, Netflix is moving forward with its planned acquisition of Warner Bros. Discovery's film and television assets.
When all is said and done, the company will own one of Hollywood's oldest movie studios in Warner Bros. Pictures, giving it a theatrical business to go with its streaming platform. Of course, the big fear is that this is all part of Netflix's plan to destroy theaters and create a Netflix/Warner Bros./HBO mega-platform (and yes, if it happens, bet on the monthly subscription price skyrocketing).
It seems Netflix has been on the hunt for a major acquisition for some time, as Bloomberg is reporting that the streamer previously considered buying Disney. That means it would have owned Marvel, Star Wars, and even the House of Mouse's theme parks and cruise ships.
EA was also considered, though the video game company has since negotiated a deal to go private with the help of a group of investors, including, somewhat controversially, Saudi Arabia's Public Investment Fund.
As it stands, Netflix's $82.7 billion acquisition of Warner Bros. will give it access to HBO, DC Studios, and franchises such as Harry Potter and The Lord of the Rings.
As for why Netflix didn't get its hands on Disney, it's partly down to co-founder and chairman Reed Hastings, who avoids major deals because he prefers to build things "from scratch." Also, "executives could never coalesce behind a deal" because they didn't want to "hurt their stock price by overpaying for an asset that traded at a much lower multiple."
Netflix co-CEO Ted Sarandos recently said that, despite industry fears, he remains committed to the theatrical model for Warner Bros. titles.
"We didn’t buy this company to destroy that value. We’re deeply committed to releasing [Warner Bros.] movies exactly the way they release those movies today. If we did this deal 24 months ago, all those movies we saw this year do so well at the box office for Warner Bros. would have been released in the same way in theaters, talking about 'Minecraft,' 'Superman,' 'Weapons,' 'Sinners,' All those movies. With the Warner Bros. operating entity, we think it’s really important the way that they create and the way that they drive value."
However, we know he wants to shorten the time movies spend in theatres. Seeing as multiplexes are already struggling to attract moviegoers who know they only need to wait a month or so to watch a new release from the comfort of home, that doesn't bode well for the big screen experience.