Netflix has agreed to acquire Warner Bros. Discovery's television and film studios, along with HBO Max, for $72 billion in a transformational deal that consolidates two major entertainment powerhouses.

The announcement came on Friday, December 5, following an intense bidding competition that involved Comcast and Paramount Skydance.​

The transaction carries a total enterprise value of approximately $82.7 billion when including debt. Netflix's offer of nearly $28 per share surpassed Paramount Skydance's bid of approximately $24 for the entirety of Warner Bros. Discovery. Each shareholder of Warner Bros. Discovery will receive $23.25 in cash and approximately $4.50 in Netflix stock for each share, valuing the company at $27.75 per share.​

The acquisition grants Netflix control over a prestigious collection of franchises and properties, including "Harry Potter," "Game of Thrones," "Friends," DC Studios, and HBO Max, which has nearly 130 million streaming subscribers. The deal would merge two of the largest players in content production and streaming under one roof, fundamentally reshaping the entertainment industry landscape.​

Netflix intends to preserve Warner Bros.' existing operations and maintain theatrical releases for the studio's films through existing agreements that extend through 2029, according to Variety.

The company has committed to continuing to develop original content and expand U.S. production capabilities. Additionally, Netflix anticipates achieving annual cost savings of between $2 billion and $3 billion by the third year following the transaction's completion.​

The deal is expected to close within 12 to 18 months, contingent on Warner Bros. Discovery's completion of the planned separation of its cable operations into a distinct publicly traded company called Discovery Global. This spin-off is projected to be completed by the third quarter of 2026, BBC reported.​

The acquisition faces significant regulatory scrutiny from antitrust authorities in both the United States and Europe. Critics, including the Directors Guild of America and Cinema United, have raised concerns about the deal's impact on theatrical releases and industry competition. Netflix has committed to paying a breakup fee of $5.8 billion if regulatory approvals fail to materialize.​

Netflix and Warner Bros. Discovery boards have unanimously endorsed the agreement. Industry analysts view the transaction as a "seismic shift" in the entertainment landscape, positioning Netflix as the dominant force in streaming and consolidated content production, as per WNCW.

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Netflix, Warner Bros.