Netflix has agreed to purchase Warner Bros. Discovery’s television and film studios along with its streaming division for $72 billion. This deal will transfer control of one of Hollywood’s most esteemed assets to Netflix, a streaming platform that has revolutionized the media industry.
The agreement, announced on Friday, concludes a competitive bidding process where Netflix emerged victorious with a bid of nearly $28 per share, surpassing Paramount Skydance’s bid of nearly $24 for Warner Bros. Discovery, including its cable TV assets designated for a spinoff.
Following the announcement, shares of Warner Bros. Discovery rose by 6.3% during Friday’s trading, while Netflix shares closed 2.9% lower and Paramount Skydance saw a decline of 9.8%.
By acquiring the owner of popular franchises such as Game of Thrones, DC Comics, and Harry Potter, Netflix will further solidify its dominance in Hollywood without relying heavily on major acquisitions or a vast content library. Warner Bros. has a rich history of producing award-winning films, including Casablanca, My Fair Lady, Unforgiven, and The Departed.
David Zaslav, CEO of Warner Bros. Discovery, expressed excitement about the collaboration with Netflix, emphasizing their commitment to delivering compelling stories to audiences worldwide for generations to come.
However, this deal is anticipated to face rigorous antitrust scrutiny in both Europe and the U.S. due to concerns about consolidating ownership of major streaming services. Cinema United, a global exhibition trade association, voiced concerns about the impact of this merger on movie theaters globally.
Netflix has assured that it will continue to release Warner Bros. films in theaters to address fears of eliminating a significant source of theatrical films. The company aims to enhance consumer benefits by potentially combining its streaming service with HBO Max, lowering the cost of bundled offerings.
Industry analysts believe that Netflix’s motivation for this acquisition stems from securing long-term rights to popular content and reducing reliance on external studios as it expands into gaming and explores new avenues for growth.
The deal, subject to closing after Warner Bros. Discovery spins off its global networks unit, is valued at $72 billion in equity and $82.7 billion, including debt. The transaction is expected to be finalized in the third quarter of 2026.
As the regulatory process unfolds, the implications of Netflix’s bid on Canadian viewers remain uncertain. Warner Bros. Discovery currently licenses HBO content to Crave, a subscription service offered by Bell Media under an exclusive multi-year agreement since 2024.
