Netflix has agreed to buy Warner Bros Discovery’s film and streaming units for $72 billion (£54bn). The deal marks one of Hollywood’s biggest shake-ups in decades. Netflix beat Comcast and Paramount Skydance after a long bidding battle.
With this move, Netflix gains access to huge franchises like Harry Potter, Game of Thrones, and the full HBO Max library. If regulators approve the deal, Netflix will instantly become one of the most powerful forces in global entertainment.
Netflix co-CEO Ted Sarandos said he feels “highly confident” about receiving regulatory approval. He believes combining Warner Bros’ historic catalog with Netflix hits like Stranger Things will help the company define “the next century of storytelling.”
Co-CEO Greg Peters highlighted the value of the HBO brand. He noted that it’s too early to explain exactly how Netflix will integrate the service, but he emphasized its importance to consumers.
Netflix expects to save $2–3 billion by cutting overlapping roles in technology and support. Warner Bros will continue releasing its movies in cinemas. It will also keep producing TV shows for outside companies, while Netflix will remain focused on exclusive content for its own platform.
Warner Bros CEO David Zaslav said the merger brings together two of the world’s strongest storytellers. He believes the partnership will allow audiences to enjoy powerful stories “for generations to come.”
The agreement values Warner Bros at $82.7 billion, including debt. Netflix offered $27.75 per share in a cash-and-stock deal. Both boards have approved the acquisition.
Before Netflix completes the takeover, Warner Bros will split its business into two separate companies. Its global networks division—home to CNN, TNT Sports, and Discovery’s European channels—will become Discovery Global. TNT Sports International will remain part of the streaming and studio divisions sold to Netflix.
What Analysts Think
Industry experts say the move shows Netflix’s ambition to dominate the future of streaming. However, they also warn that merging two major studios could create serious challenges. Hollywood unions and regulators may resist the deal.
Analysts expect the combined company to reduce its overall film and TV output. They also predict higher subscription prices for customers. Some believe Netflix may become more expensive even if HBO Max gets folded into the platform.
Netflix’s promise to keep releasing Warner Bros films in cinemas has earned some goodwill from Hollywood. Still, the Directors Guild of America says it has “significant concerns,” especially regarding the impact on workers and future productions.
