Who’s not getting control of CNN? The Ellisons and Donald Trump’s efforts to take another news organization after CBS have been thwarted.
In a boffo sale announced overnight, Netflix is buying Warner Bros and HBO from David Zaslav, who will keep CNN as well TNT and TBS etc in a spun off Discovery Global.
There are people in Hollywood concerned that Netflix will destroy Warner’s theatrical arm. But this could have been a lot worse if the Ellisons — whose bid included all of Warner Bros Discovery — had gotten control of CNN.
Will Netflix indeed take Warner’s out of theaters? Let’s hope not. If they can keep Warner’s as a separate company, everyone wins. Why would they destroy a 100 Year old brand? Then we’ll all be watching movies on phones and tablets.
Also, for film, Netflix already has issues with places like the Cannes Film Festival, which won’t show their films because of streaming. If Warner’s was reduced to not putting films in theaters, the eco system of the movie business would be obliterated.
But let’s be happy that the Ellisons didn’t get what they wanted. That itself is a victory.
The cash and stock transaction is valued at $27.75 per WBD share with a total enterprise value of approximately $82.7 billion (equity value of $72.0 billion).
From the press release:
“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.”
