Netflix has sealed a landmark agreement to acquire Warner Bros. Discovery’s film and TV studios, along with its HBO Max streaming service, in a deal worth $82.7 billion, including debt. The move marks one of the biggest shake-ups in modern entertainment history.
Under the agreement, Warner Bros. Discovery shareholders will receive $23.25 in cash plus 4.501 Netflix shares for each share held—valuing the company at $27.75 per share. Both boards approved the deal unanimously.
The acquisition hinges on Warner Bros. Discovery completing the planned spin-off of its Global Networks division, home to CNN, TNT, and other cable assets, into a standalone public company. That separation, expected in Q3 2026, must be finalised before the Netflix deal closes in 12-18 months.
Netflix Outbids Paramount and Comcast
Netflix beat out aggressive bids from Paramount, Skydance, and Comcast.
Paramount Skydance had offered an all-cash deal of about $27 per share for the whole company, while Comcast pursued only the studio and streaming divisions. Netflix’s mix of cash, stock, and a $5 billion regulatory breakup fee pushed it ahead and secured exclusive negotiations.
A Combined Streaming Powerhouse
The deal brings Warner Bros.’ top global franchises, including Harry Potter, DC Comics, and Game of Thrones, under Netflix’s umbrella. This gives Netflix, already boasting 300 million subscribers, access to HBO Max’s 100 million users and one of Hollywood’s richest content libraries.
Netflix says it will continue Warner Bros.’ theatrical releases, balancing cinema distribution with streaming, an approach that marks a strategic shift from Netflix’s earlier direct-to-streaming model.
In a statement, Netflix wrote: “Together, we’ll define the next century of storytelling.”
Co-CEO Ted Sarandos called the acquisition a “rare opportunity” to scale production, expand jobs, and boost investment in original content.
David Zaslav, Warner Bros. Discovery CEO added, “By coming together with Netflix, we will ensure our stories continue to resonate for generations.”
Regulatory Hurdles and Industry Pushback
Despite Sarandos’ confidence, analysts warn the deal will face intense scrutiny.
Netflix currently holds 20 per cent of the U.S. streaming market; adding HBO Max could significantly raise that share and raise antitrust concerns.
Industry groups are already reacting:
- Directors Guild of America plans talks with Netflix over job security.
- Cinema United warns that the merger could weaken movie theatres.
- A bloc of film executives has urged Congress to investigate, calling the deal a threat to Hollywood’s competitive structure.
- Paramount has accused Warner Bros. Discovery of favouring Netflix during the sale process.
A Turning Point for Both Companies
For Netflix, the acquisition marks the biggest purchase in its history, following years of organic growth.
For Warner Bros. Discovery, it represents the end of a turbulent period marked by $40 billion in debt, aggressive restructuring, and streaming losses since the 2022 merger.
If approved, the combined company would reshape the global entertainment landscape, blending Hollywood’s most iconic studio with the world’s largest streaming platform.
