Netflix has entered into a definitive agreement to acquire Warner Bros. Discovery’s film and television studios, along with its HBO Max streaming service, in what is being described as one of the largest takeovers in entertainment history. The deal is valued at $72 billion in equity and $82.7 billion including debt, signaling massive consolidation in the global media landscape.
Under the acquisition terms, each Warner Bros. Discovery shareholder will receive $23.25 in cash and 4.501 shares of Netflix common stock per share, valuing the company at $27.75 per share. Both boards unanimously approved the deal.
The sale is contingent on the planned separation of Warner Bros. Discovery’s Global Networks division, which includes CNN and TNT into an independent public company. That split is scheduled for Q3 2026, and the Netflix merger is expected to close within 12 to 18 months afterward.
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Netflix Beats Paramount Skydance, Comcast to the Bid
Netflix outpaced rival bidders including Paramount Skydance and Comcast, offering a blend of cash and stock plus a $5 billion breakup fee should regulators block the deal. This strengthened Netflix’s position as the preferred buyer, leading to exclusive negotiations.
What the Acquisition Means for Streaming
The merger will bring some of Hollywood’s biggest franchises such as Harry Potter, DC Comics, Game of Thrones, and more under Netflix’s control.
Netflix will pair its 300 million+ subscribers with HBO Max’s 100 million users, creating a major global streaming force.
Despite Netflix’s streaming-first model, the company pledged to maintain theatrical releases for Warner Bros. films, a move aimed at reassuring Hollywood stakeholders.
Statements From Both Companies
Netflix wrote in an official announcement:
“Together, we’ll define the next century of storytelling, creating an extraordinary entertainment offering for audiences everywhere.”
Netflix co-CEO Ted Sarandos called the acquisition a “rare opportunity” to expand production capacity and invest more in original content.
Warner Bros. Discovery CEO David Zaslav added:
“By coming together with Netflix, we will ensure people everywhere continue to enjoy the world’s most resonant stories for generations to come.”
Industry Reactions and Concerns
The deal has drawn mixed reactions:
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Directors Guild of America is seeking discussions with Netflix over labor implications.
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Cinema United, representing theater owners, warned of potential harm to cinemas if streaming is prioritized.
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A coalition of Hollywood executives has urged Congress to intervene, citing risks to industry competition.
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Paramount criticized the sale process, alleging it favored Netflix unfairly.
A Turning Point for Both Companies
For Warner Bros. Discovery, the sale caps years of financial turbulence marked by $40 billion in debt and streaming losses following its 2022 merger.
For Netflix, this marks its largest acquisition ever, signaling an aggressive push into traditional Hollywood territory amid slowing subscriber growth.
The merger is poised to reshape global entertainment, pending regulatory approval.
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