Netflix has agreed to acquire Warner Bros Discovery’s television, film studios, and streaming operations in a US$72 billion cash-and-stock deal.
The agreement, reached after intense bidding, hands the streaming giant iconic franchises like Harry Potter, Game of Thrones, HBO, and DC Comics. It marks Netflix’s boldest move yet to own premium content outright.
From Disruptor to Hollywood Giant
Co-CEO Ted Sarandos told investors many would be surprised as Netflix has always built rather than bought. He described the opportunity as rare and vital for entertaining global audiences on a larger scale. The deal outbid rivals Paramount Skydance and Comcast following weeks of fierce competition.
Shareholders of Warner Bros Discovery will receive US$27.75 per share, representing a 121% premium, plus a US$5.8 billion breakup fee.
Antitrust Concerns Loom Large
The merger is expected to face tough regulatory scrutiny in the United States and Europe over competition concerns. Critics, including Hollywood unions and lawmakers, warn it threatens cinemas and reduces choice in film and TV production. Some have called the tie-up an unprecedented risk to the industry.
Promises of Benefits Ahead
Netflix insists the combination with HBO Max will lower prices for viewers, increase production, create jobs, and protect theatrical releases. Co-CEO Greg Peters said the company plans bundling options and cinema commitments for Warner films. The deal also boosts Netflix’s push into gaming using titles like Hogwarts Legacy.
Cost savings of US$2-3 billion annually are projected within three years after closing. The acquisition is set to complete after Warner spins off its Discovery networks in 2026.
