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Multiplex Association of India Warns Against Netflix-Warner Bros. Acquisition

Variety reported on Saturday that The Multiplex Association of India has made a statement regarding Netflix's proposed acquisition of Warner Bros. Discovery, warning that the deal could diminish theatrical content availability and threaten India's cinema ecosystem.

Deadline reported on Thursday that the Directors Guild of America plans to meet with Netflix to discuss its "concerns" regarding the potential acquisition. 

Netflix and Warner Bros. Discovery announced on Friday that they have entered into a definitive agreement for Netflix to acquire Warner Bros., its film studios, its television studios, HBO, and HBO Max. The deal will close after Warner Bros. Discovery's previously announced split into two separate publicly traded companies, Warner Bros. and Discovery Global, which is now expected to be completed during Q3 2026. The transaction's completion is also subject to regulatory approvals, shareholder approval, and other closing conditions.

Netflix offered US$27.75 per Warner Bros. Discovery share with a total equity value (for shareholders) of approximately US$72.0 billion and a total enterprise value of approximately US$82.7 billion. Warner Bros. Discovery shareholders will receive US$23.25 in cash and US$4.50 in shares of Netflix common stock for each share of Warner Bros. Discovery stock.

The Boards of Directors of both Netflix and Warner Bros. Discovery unanimously approved the transaction.

Reuters had reported on Friday that Netflix entered into exclusive talks with entertainment conglomerate Warner Bros. Discovery regarding the possibility of acquiring its studio and streaming service. Reuters had reported on Thursday that Netflix offered around US$28 a share for the company. Netflix, Paramount Skydance, and Comcast made preliminary buyout proposals, and then Warner Bros. Discovery received a second round of bids last week. Deadline had earlier reported that Paramount had insisted in a letter to Warner Bros. Discovery that the rival offers from Netflix and Comcast both “present serious issues that no regulator will be able to ignore” and that Netflix would face major antitrust hurdles adding HBO Max to the company.

How Warner Bros. Discovery Was Formed

Warner Bros. Discovery was formed after AT&T spun off its WarnerMedia business and it merged with Discovery, a process that began in 2021 and completed the following year. Some of the anime industry-related assets involved in the company's formation included Cartoon Network (with the Toonami and Adult Swim programming blocks), Boomerang, HBO Max, VRV, and other channels and services that have offered anime in their programming. On the Discovery side, the Discovery Family channel (formerly known as The Hub) featured programming with some Japanese roots such as Transformers, Pac-Man, and Deltora Quest.

Warner Bros. Discovery also owns the production company Warner Bros. Japan, which launched in 2011. 

Warner Bros. Japan is involved in several anime properties and has produced over 80 anime titles, including Is It Wrong to Try to Pick Up Girls in a Dungeon?, Food Wars! Shokugeki no Soma, JoJo's Bizarre Adventure, Record of Ragnarok, and SPY x FAMILY. Warner Bros. Japan and its parent company also handle overseas and domestic live-action film productions of Japanese properties such as Godzilla, Rurouni Kenshin, Gintama, and Death Note. As of last year, Warner Bros. Japan plans to increase its annual output from five to 10 anime titles to over 10. Warner Bros. Japan had announced in September it would stop distributing films in Japan at the end of 2025. Toho-Towa will distribute Warner Bros. films going forward.

The HBO Max streaming service offers GKIDS' "entire Studio Ghibli film library." At launch, Crunchyroll (previously part of WarnerMedia), Cartoon Network, Adult Swim, and Rooster Teeth also offered content through the service. The service announced an increase in the price of its subscription plans on October 21, marking the third price increase since launch. (HBO Max raised its subscription prices in February 2023 and June 2024.)

Source: Variety (Naman Ramachandran)