Netflix has agreed to purchase the film studio and streaming operations of Warner Bros Discovery for $72 billion in a combination of cash and stock, instantly reshaping the global entertainment landscape.
The deal gives Netflix ownership of some of the most valuable intellectual property in Hollywood, including the Harry Potter, DC Universe, Lord of the Rings, Game of Thrones, and classic library titles ranging from Casablanca to The Matrix.
It also brings the HBO brand and the Max streaming service under the Netflix umbrella.
Netflix co-CEO Ted Sarandos described the acquisition as a once-in-a-generation opportunity.
“Warner Bros has defined entertainment for the past 100 years. By bringing these two legendary studios and libraries together, we have the chance to shape the next century of storytelling and deliver even more of the world’s greatest content to audiences everywhere,” Sarandos said in a statement.
Warner Bros Discovery CEO David Zaslav echoed the sentiment, calling the partnership “the best possible outcome to ensure these iconic stories and franchises continue to thrive for generations.”
Under the terms of the agreement, Warner Bros Discovery shareholders will receive $27.75 per share, representing a total equity value of $72 billion and an enterprise value (including debt) of approximately $82.7 billion.
The boards of both companies have unanimously approved the transaction.
The sale covers Warner Bros’ film and television studios, the Max streaming platform, and the vast content library, but excludes the company’s linear television networks (such as CNN, TNT, TBS, Discovery Channel, and international free-to-air channels), which Warner Bros Discovery plans to spin off into a separate publicly traded company in 2026 as previously announced.
The agreement follows a competitive auction process in which Netflix outbid offers from Comcast-NBCUniversal and the newly merged Paramount-Skydance consortium.
Industry analysts described the move as a seismic shift for Hollywood.
“This creates an undisputed streaming superpower,” said Paolo Pescatore of PP Foresight. “Netflix is making an aggressive play to dominate the next era of entertainment, but integrating two companies of this scale will be extraordinarily complex.”
Regulators complex.”
U.S. and European competition authorities are expected to scrutinize the transaction closely. If approved, the combined company would control an unprecedented share of premium filmed entertainment and could accelerate consolidation across cinemas, television production, and streaming.
Some analysts also warned of potential downsides for consumers and the broader industry.
“A merger of this magnitude almost certainly leads to less overall film and series production and higher subscription prices over time,” said Tom Harrington of Enders Analysis.
“Netflix gains enormous pricing power, while the traditional theatrical ecosystem could face further pressure.”
The deal is expected to close in late 2026 or early 2027, pending regulatory approval and the completion of Warner Bros Discovery’s planned separation of its networks business.
For Netflix, which has spent years building its original-content engine, the acquisition instantly solves its long-term library challenge and provides decades of built-in franchise programming.
For Warner Bros Discovery, the sale provides financial certainty after years of heavy debt and stock-price pressure following the 2022 merger of WarnerMedia and Discovery.
The transaction marks the boldest move yet in the streaming wars and signals that, after a decade of fragmentation, the pendulum may be swinging back toward consolidation among Hollywood’s biggest players.
