Netflix has agreed to acquire Warner Bros Discovery’s television and film studios, along with its streaming division, in a landmark $72 billion deal that places one of Hollywood’s oldest and most influential entertainment portfolios under the control of the streaming pioneer responsible for reshaping the global media industry.
The agreement, announced Friday, concludes a fierce bidding battle in which Netflix outpaced Paramount Skydance with a nearly $28-per-share offer—surpassing Paramount’s bid of almost $24 for the entire company, including cable networks now headed for a spinoff. Warner Bros Discovery closed Thursday at $24.50 a share, giving it a valuation of about $61 billion.
A Deal Poised to Reshape the Media Landscape
With the acquisition, Netflix will take ownership of powerhouse franchises such as Game of Thrones, DC Comics and Harry Potter—a move set to strengthen its competitive position against rivals including Disney and the Ellison family-backed Paramount.
“Together, we can give audiences more of what they love and help define the next century of storytelling,” Netflix co-CEO Ted Sarandos said as reported in Reuters.
Analysts say the deal underscores Netflix’s push to secure long-term rights to premier content as it expands into gaming and seeks new growth opportunities following the success of its crackdown on password sharing.
Intense Regulatory Scrutiny Expected
The acquisition is likely to face heavy antitrust scrutiny in both the United States and Europe, where regulators are expected to examine the implications of combining the world’s largest streaming service with a major rival boasting nearly 130 million streaming subscribers and ownership of HBO Max.
Paramount, which initiated the bidding war with multiple unsolicited offers and maintains close ties to the Trump administration, criticized the sale process earlier this week, alleging preferential treatment toward Netflix.
As part of its pitch, Netflix argued that bundling its service with HBO Max could lower costs for consumers, Reuters reported Tuesday. The company has also assured Warner Bros Discovery it would continue to release the studio’s films theatrically, aiming to allay fears about diminishing the number of major Hollywood film producers.
Cash-and-Stock Structure
Netflix shares fell nearly 3% in premarket trading following the announcement, while Paramount dropped 2.2%. Comcast, another bidder in the process, traded largely unchanged.
Under the terms of the deal, Warner Bros Discovery shareholders will receive $23.25 in cash and approximately $4.50 in Netflix stock for each share they own, valuing the company at $27.75 per share—or roughly $72 billion in equity and $82.7 billion including debt.
The acquisition is expected to close after Warner Bros Discovery completes the spinoff of Discovery Global, its international networks division, now slated for the third quarter of 2026.
Netflix said it anticipates generating at least $2 billion to $3 billion in annual cost savings by the third year following completion of the deal.
