Netflix Revises Warner Bros Discovery Deal to All-Cash Transaction!!

Netflix has just taken a huge step towards completing its pending acquisition of Warner Bros., which was announced near the end of last year. The studios made a joint announcement this morning that Netflix has agreed to pay its $83 billion proposed price for Warner Bros. entirely in cash. This certainly makes for a much more appealing offer than having much of the sale price be tied up in assets. It’s also been confirmed that shareholders will vote on whether to push the sale through by April, though specific dates have yet to be announced.

This announcement has shaken the entertainment world to its core for months now, with many claiming that it could alter, if not destroy, the fate of movie theaters in the future. When it was first announced that Netflix had emerged as the winning bidder for Warner Bros., this led to rampant speculation that all the big blockbusters Warner Bros. delivers year after year would not be released straight to streaming. Netflix CEO Ted Sarandos came out and said that Netflix still plans to release movies in theaters, just on much shorter windows, like 10 days. This would still be a massive blow for the theatrical industry.

Movies deserve more than 10 days to get a chance to shine in theaters. Avatar: Fire and Ash is a perfect example of just how far a film’s legs can spread at the box office. The film opened with the #1 spot at the box office over the weekend of December 19, and it’s yet to be dethroned after four more full weekends in theaters. It’s grossed over $500 million after its first 10 days in theaters.

Netflix Is Testing Theatrical Releases

Netflix has been testing our different models for theatrical releases, and not just for movies. The streaming goliath put the final episode of Stranger Things in theaters on New Year’s Day, and it’s estimated that it generated over $25 million in box office earnings. Netflix has also released some of its other big movies, including Train Dreams and A House of Dynamite, in limited theaters two weeks before their streaming debut. It will test out this model once again in March with the arrival of The Immortal Man, the Peaky Blinders spin-off movie starring Cillian Murphy and Rebecca Ferguson.