- Netflix is buying WBD assets, including HBO Max, in a media mega-deal.
- Warner Bros. Discovery CEO David Zaslav told staffers that “HBO Max will stay” after Netflix buys it.
- Netflix expects the deal will take 12 to 18 months to complete.
What will happen to HBO Max after Netflix buys it?
Warner Bros. Discovery CEO David Zaslav answered that question in a town hall with employees on Friday.
“HBO Max will stay,” Zaslav said, according to a recording of the all-hands obtained by Business Insider. “So anybody that has Netflix and has HBO Max will have a better experience. For people that only want HBO Max, they’ll be able to get it.”
The Friday meeting followed the announcement earlier in the day that Netflix would buy WBD’s streaming and studios business — including the Warner Bros. studio, HBO, and HBO Max — in a blockbuster $72 billion deal.
HBO Max and Netflix will operate as separate brands and services, a person with knowledge of Netflix’s thinking said.
The deal is expected to close in 12 to 18 months, pending regulatory approval, the companies said.
Although Zaslav said HBO Max would continue as a stand-alone entity, he won’t ultimately be in the driver’s seat if the deal goes through. Netflix could make strategy changes as it absorbs the WBD assets — especially over the long haul.
Business Insider’s Peter Kafka wrote the following about the Netflix-HBO tie-up: “The most logical way this would play out would be something like this: Netflix continues to offer the service now called HBO Max to anyone who wants it — whether or not they subscribe to Netflix — and then offers it to Netflix customers at a discount. A real bundle. A Netflix version of ‘basic cable + HBO.'”
Kafka added: “I’m sure Netflix will consider some tweaks beyond simply running two different services at the same time and selling a discounted bundle.”
HBO Max has lived through a series of name changes — and owners. For employees working on WBD’s streaming services, the only constant seems to be change.
