Netflix announced Friday that it has reached a definitive agreement to acquire major assets of Warner Bros. Discovery (WBD). The deal marks the end of a tense and closely watched bidding battle that also drew interest from Paramount Skydance and Comcast.
The acquisition, structured as a cash-and-stock transaction, values WBD shares at $27.75 apiece, placing the company’s equity value at $72 billion and bringing the total enterprise value to roughly $82.7 billion.
What Netflix Is Acquiring
Under the terms of the agreement, Netflix will take ownership of:
- Warner Bros.’ iconic film and television studios
- HBO and HBO Max, along with their award-winning and globally recognized content libraries
- Major franchises including Harry Potter, DC Comics, and classics such as The Wizard of Oz
- Prestige television series such as Game of Thrones, The Sopranos, Friends, and The Big Bang Theory
The acquisition significantly expands Netflix’s footprint, shifting it from the world’s largest streaming service into a true Hollywood powerhouse with vast production capabilities, deep franchise potential, and a sweeping catalog of entertainment.
What’s Not Included
Notably, WBD’s portfolio of cable networks — including CNN, TNT, Discovery Channel, and other pay-TV properties — will not be part of the sale. These networks will be spun off into a separate publicly traded company called Discovery Global. The spin-off is expected to be completed by the third quarter of 2026, after which the Netflix acquisition will move toward final regulatory and shareholder approval.
Industry Impact
The deal stands among the largest and most consequential media consolidations in decades. By bringing together Netflix’s unrivaled global streaming reach and Warner Bros.’ century-old studio legacy, the acquisition has the potential to fundamentally alter how movies and premium television reach audiences worldwide.
For consumers, the merger may eventually lead to an integrated platform combining Netflix’s original programming with Warner Bros.’ legacy content — potentially creating the largest and most diverse streaming library in existence.
However, industry analysts warn that such consolidation could intensify antitrust scrutiny, especially at a time when regulators are increasingly sensitive to the power of dominant digital platforms. Questions also remain about how Netflix will handle theatrical releases and whether the company will embrace — or further diminish — traditional box-office models.
What Happens Next
The closing of the deal hinges on:
- Completion of the Discovery Global spin-off
- Regulatory review, likely to be rigorous
- Approval from Warner Bros. Discovery shareholders
