Netflix has agreed to buy Warner Bros, including game developers behind Mortal Kombat, Hogwarts Legacy

[kitler53]

https://www.videogameschronicle.com/news/netflix-has-agreed-to-buy-warner-bros-including-game-developers-behind-mortal-kombat-hogwarts-legacy/

Netflix has agreed a deal to acquire the film and streaming business of Warner Bros Discovery, which also includes its video game arm.

After weeks of bidding from companies including Comcast and Paramount Skydance, the pair announced a deal worth $82.7 billion in enterprise value on Friday.

Warner Bros. owns IPs such as Harry Potter, Game of Thrones, and DC Universe. It also owns video game developers like Mortal Kombat's NetherRealm Studios, Batman: Arkham creator Rocksteady, Hogwarts Legacy's Avalanche, and Lego game studio TT Games.

According to Netflix, the deal "brings together two pioneering entertainment businesses", combining "Netflix's innovation, global reach and best-in-class streaming service with Warner Bros.' century-long legacy of world-class storytelling".

The US competition regulator is likely to get involved before the deal closes, and Netflix is offering a $5 billion breakup fee if regulators don't approve the deal, according to Bloomberg.

[kitler53]

Pi will be ecstatic!

...or was that erratic.  those words are so confusing because i don't know what they mean.

[the-pi-guy]

[kitler53]

you reacted better than i expected.  xD

[the-pi-guy]

Not much I can do about it.

At the very least, I would guess nothing will really change for the next few years. Not just because the deal will have to go through regulatory approvals. But Netflix will have to figure out how to make changes after that as well. I guess I'm expecting like 2028, that physical media will take a hit.

But, maybe they'll look at Warner's financials and feel like physical media doesn't hurt their business model, and start to release more. I really doubt it.


I'm more in the stage of thinking we need widespread company breakups... Like when Standard Oil got broke up into 34 different companies by the federal government. 

[nnodley]

I'm more in the stage of thinking we need widespread company breakups... Like when Standard Oil got broke up into 34 different companies by the federal government. 

I do feel like there might be some big scrutiny on this merger.  Even if it wasn't Netflix it would still. 

But I would definitely agree that it's becoming just a few major players now and that's terrible for competition, so we will see. 

[nnodley]

Also them offering a 5 billion break up fee if it's doesn't go through tells me they think it is a possibility.  But I also don't know if that type of thing is standard for mergers. I don't really pay close attention to the details usually.

[kitler53]

I'm more in the stage of thinking we need widespread company breakups... Like when Standard Oil got broke up into 34 different companies by the federal government. 

yeah, in soo much agreement.

when MS publicly states they expect xbox to achieve 30% or higher profit margins all i can think is they have a monopolistic view on the world.   no business with proper competition should be able to routinely hit a profit margin that high.  

[the-pi-guy]

Also them offering a 5 billion break up fee if it's doesn't go through tells me they think it is a possibility.  But I also don't know if that type of thing is standard for mergers. I don't really pay close attention to the details usually.

It's pretty standard.

Microsoft's Activision acquisition had a similar sized break up fee. 

[Legend]

What do you guys think will happen to DC? Will the James Gunn universe be scraped? I guess he has a few years to prove himself before Netflix officially takes control.

[nnodley]

What do you guys think will happen to DC? Will the James Gunn universe be scraped? I guess he has a few years to prove himself before Netflix officially takes control.

I mean so far, his universe has done well enough, but I'm betting they will give it through a few of the planned movies to see how it performs and then decide. 

[the-pi-guy]

What do you guys think will happen to DC? Will the James Gunn universe be scraped? I guess he has a few years to prove himself before Netflix officially takes control.

I've seen people argue the opposite. 

Netflix is like twice as big as Disney+, and that it'll guarantee DC is in a better position than Marvel. 

[Legend]

I've seen people argue the opposite.

Netflix is like twice as big as Disney+, and that it'll guarantee DC is in a better position than Marvel.

Marvel sucks nowadays but Disney itself is still much bigger than netflix. That would be really interesting to see.

I mean so far, his universe has done well enough, but I'm betting they will give it through a few of the planned movies to see how it performs and then decide.

With Netflix spending $80 billion or whatever, well enough is probably not well enough. They'd want it to be a juggernaut.