Netflix to Acquire Warner Bros. Film Studio and HBO Max in Landmark $72 Billion Deal

New York: Netflix has reached an agreement to acquire key assets of Warner Bros. Discovery (WBD) in a deal valued at $72 billion, marking one of the largest transactions in the modern media era and a defining moment in the streaming industry’s evolution.

The agreement, announced Friday, ends a tense bidding race that saw Paramount Skydance and Comcast also competing for the storied Hollywood assets. The transaction, a mix of cash and stock, reflects a valuation of $27.75 per WBD share, giving the deal a total enterprise value of about $82.7 billion.

Under the terms, Netflix will take ownership of WBD’s film studio and its streaming platform, HBO Max, while WBD continues with its planned spin-out of Discovery Global, which houses TV networks such as CNN and TNT.

The acquisition is expected to close in 12 to 18 months, following the completion of the networks’ separation and standard regulatory approvals.

A Transformational Move for Hollywood

The deal brings together Netflix, the world’s largest subscription streaming service, and Warner Bros., one of the most influential film studios in cinematic history. The combined libraries include classics such as The Wizard of Oz, global franchises like Harry Potter, and the DC Entertainment universe, along with HBO’s award-winning catalogue featuring The Sopranos and Game of Thrones.

Netflix co-CEO Ted Sarandos acknowledged the surprise surrounding the announcement.
“We’ve been known to be builders, not buyers,” Sarandos said. “But this is a rare opportunity. It will help us achieve our mission to entertain the world and bring people together through great stories.”

Netflix’s initial bid of $27 per share reportedly shifted momentum in its favor, surpassing Paramount’s earlier proposals.

Deal Terms and Shareholder Impact

Following the close, each Warner Bros. Discovery shareholder will receive $23.25 in cash and $4.50 in Netflix common stock per WBD share.
Both companies’ boards approved the transaction unanimously.

The agreement includes significant breakup fees:

• $5.8 billion payable by Netflix if the deal fails to secure regulatory approval.

• $2.8 billion payable by WBD if it withdraws to pursue another merger.

Paramount Raises Concerns

Competition for WBD’s assets had intensified in recent weeks. Paramount Skydance, which emerged from a merger earlier this year, submitted multiple bids, including an all-cash offer of $30 per share, and expressed concerns over the fairness of the sale process.

In a letter disclosed this week, Paramount argued that WBD appeared to be favoring Netflix despite higher competing bids. WBD did not publicly respond to the claims.

Regulatory Scrutiny Expected

The consolidation of two major streaming players is likely to draw scrutiny from U.S. and international regulators, especially given the companies’ vast subscriber bases.
Netflix reported more than 300 million global subscribers at the end of 2024, while WBD had 128 million as of September 30.

If approved, the acquisition would dramatically reshape the streaming landscape, creating a dominant force in entertainment content, distribution, and global reach.