Netflix has reached a definitive agreement to buy Warner Bros. Discovery’s film and television studios along with its HBO Max streaming service, marking a major consolidation in the media industry. The deal, valued at $72 billion in equity and $82.7 billion including debt, combines Netflix’s subscriber base with Warner Bros.’ content library.
Under the terms, each Warner Bros. Discovery shareholder will receive $23.25 in cash and 4.501 shares of Netflix common stock per share held. The transaction values Warner Bros. Discovery at $27.75 per share. The boards of both companies approved the agreement unanimously. The acquisition follows Warner Bros. Discovery’s plan to separate its Global Networks division, which includes CNN and TNT, into a standalone public company. That split, now set for the third quarter of 2026, must occur before the Netflix deal closes, expected in 12 to 18 months.
Netflix’s offer edged out competing bids from Paramount Skydance and Comcast. Paramount Skydance aimed to acquire the entire Warner Bros. Discovery for about $27 per share in an all-cash deal, while Comcast targeted only the studio and streaming parts. Netflix’s mix of cash and stock, along with a $5 billion breakup fee if regulators block the merger, positioned it as the frontrunner. Exclusive talks began after Netflix submitted its latest bid on Thursday.
The acquisition will integrate Warner Bros.’ franchises, such as Harry Potter, DC Comics, and Game of Thrones, into Netflix’s platform. Netflix, with over 300 million subscribers, will gain control of HBO Max’s 100 million users and Warner’s extensive film and TV libraries. This adds depth to Netflix’s catalog, which relies on licensed and original content. Netflix has committed to continuing theatrical releases for Warner Bros. films, a shift from its focus on direct-to-streaming models.
In a statement on social media and its investor site, Netflix said: “Today, Netflix announced our acquisition of Warner Bros. Together, we’ll define the next century of storytelling, creating an extraordinary entertainment offering for audiences everywhere.” Netflix co-CEO Ted Sarandos called it a “rare opportunity” to expand production and original content investment, which he said would create jobs and support the industry.
Warner Bros. Discovery CEO David Zaslav added: “For more than a century, Warner Bros. has thrilled audiences… By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come.” The deal allows Warner Bros. Television to produce for third parties, and Netflix will maintain exclusive content for its platform.
This is Netflix’s largest acquisition to date; the company has historically grown through organic development rather than buys.
Netflix holds about 20 percent of U.S. streaming market share; adding HBO Max could push that higher. Sarandos expressed confidence in approval, but analysts note risks from consolidated ownership.
Industry groups have raised concerns. The Directors Guild of America plans meetings with Netflix over labor impacts. Cinema United, representing theaters, warns the deal could harm moviegoing by prioritizing streaming. A group of film executives urged Congress to intervene, citing risks to Hollywood’s structure. Paramount accused Warner Bros. Discovery of an unfair sale process favoring Netflix.
This deal caps a turbulent period for Warner Bros. Discovery, which has dealt with $40 billion in debt and streaming losses since the 2022 merger. For Netflix, it signals a push into traditional Hollywood assets amid slowing subscriber growth.
