Netflix will acquire Warner Bros. Discovery as HBO Max will remain standalone. Photo credit: Thomas Hawk / Flickr
Following the historic announcement on Friday, December 5, that Netflix would acquire Warner Bros. Discovery for €71.2 billion, Warner Bros. Discovery CEO and President David Zaslav revealed that HBO Max users have the option to remain on the platform without subscribing to both services.
Warner Bros. Discovery CEO: “HBO Max is here to stay”
Zaslav said in a meeting with employees that the platform will remain an independent service after the acquisition. During the meeting, he assured both employees and consumers that “HBO Max is here to stay” and that “everyone who has Netflix and HBO Max will have a better experience. Those who only want HBO Max will be able to get it.”
Netflix’s acquisition of Warner Bros. Discovery, which includes Warner Bros. Studios, HBO and HBO Max, is expected to be fully completed within 12 to 18 months. Rumors from sources close to Netflix say their strategy indicates that Netflix and HBO Max will operate as separate brands and services, in line with Zaslav’s description.
HBO Max undergoing ongoing changes and restructuring
However, although Mr. Zaslav is set to become a billionaire after the acquisition, he will not be able to control the company once the acquisition is complete. The acquisition of Warner Bros. Discovery’s assets will give Netflix the power to implement strategic changes. Consumers and employees will have to wait and see how the changes progress until the acquisition process is completed.
As it stands, HBO Max has gone through a series of changes and reorganizations in both name and ownership, creating difficulties for the employees who work there. For them, the only constant is change.
Historic move to create one of the most extensive entertainment libraries
Netflix’s acquisition of Warner Bros. Discovery has gone down in history as one of the most important corporate moves in streaming history. The merger of two highly influential media empires would create one of the most extensive collaborative entertainment libraries ever created. Warner’s signature titles include: big bang theory, the sopranos, game of thrones, wizard of ozDC Universe. Netflix is a streaming giant with countless iconic titles including: squid game, money robbery, bridgerton and Stranger Things.
David Ellison’s Paramount Skydance is also in the race to buy Warner Bros., making an offer of about $60 billion (51.2 billion euros) for the company in October. Netflix ultimately offered $27.75 (€23.68) per share, representing a nearly 12% premium to the closing price.
Expert analysts say the deal won’t dramatically increase Netflix’s value… but it will make it much more competitive against the streaming giant’s rivals Disney+ and Amazon Prime Video.
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