Netflix to Acquire Warner Bros Discovery’s Studios and Streaming Unit in Landmark $72 Billion Deal
Ashwini Gambo
In a historic move poised to reshape Hollywood’s power structure, Netflix has agreed to buy Warner Bros Discovery’s TV and film studios and its streaming division for $72 billion, marking one of the largest entertainment acquisitions in history. The deal, announced Friday, concludes a fiercely competitive bidding war that saw Netflix outmaneuver Paramount’s Skydance-backed offer of nearly $24 per share. Netflix’s nearly $28-a-share bid ultimately won the race, valuing the legacy media giant significantly above its recent $24.5 stock close, which had placed Warner Bros Discovery’s market value at $61 billion.
The acquisition hands Netflix control of some of Hollywood’s most valuable franchises, including Game of Thrones, DC Comics, and Harry Potter, significantly strengthening its position against rivals like Disney and Paramount. Netflix co-CEO Ted Sarandos called the merger an opportunity to “define the next century of storytelling,” emphasizing the combined creative might of the two companies.
However, the landmark deal is expected to face intense antitrust scrutiny in both the U.S. and Europe. With HBO Max and nearly 130 million streaming subscribers entering Netflix’s ecosystem, regulators are likely to examine the effects on competition, theatrical releases, and consumer pricing. Netflix has attempted to ease concerns by pledging to keep Warner Bros films in cinemas and suggesting that a combined streaming bundle could potentially reduce consumer costs.
Under the agreement, Warner Bros Discovery shareholders will receive $23.25 in cash plus $4.50 in Netflix stock per share, valuing the company at $27.75 per share and roughly $82.7 billion including debt. The acquisition is expected to close after Warner Bros Discovery completes the spinoff of its global networks unit Discovery Global in the third quarter of 2026. Netflix projects $2–3 billion in annual cost savings within three years of closing, signaling significant restructuring ahead.
