Netflix has sent shockwaves through the global entertainment industry after announcing plans to acquire key assets of Warner Bros. Discovery in a deal valued at US$72 billion. Pending regulatory approval, the move would unite two major forces in entertainment: the world’s largest streaming platform and a century-old studio behind some of the most iconic franchises in film and television history.
Netflix’s Largest Acquisition to Date
The acquisition covers Warner Bros.’ film and television studios, HBO, and the HBO Max streaming service. The transaction is priced at US$27.75 per share, placing the company’s valuation at US$82.7 billion with an equity value of US$72 billion.
The deal will be structured through a combination of cash and stock, with Warner Bros. Discovery shareholders set to receive US$23.25 in cash and US$4.50 in Netflix shares for each share they hold.
The agreement also includes significant breakup fees. Netflix has committed to paying US$5.8 billion if the deal falls through due to regulatory obstacles, while Warner Bros. Discovery would be required to pay US$2.8 billion should it choose to accept an offer from another buyer.
What’s Included and What’s Not
The assets being acquired by Netflix include the Warner Bros. film studio, Warner Bros. Television, HBO and HBO Max, DC Studios, as well as a film and television library built over more than a century.
However, several cable networks are excluded from the transaction, including CNN, Discovery, TNT Sports, and other cable assets under Discovery Global.
Warner Bros. Discovery will continue with its previously announced plan to spin off these cable businesses into a new publicly listed entity named Discovery Global, with the process expected to be completed in the third quarter of 2026.
A Major Impact on the Entertainment Industry
The deal brings together Warner Bros.’ long-standing legacy — home to franchises and classics such as Harry Potter, the DC Universe, The Sopranos, Friends, Game of Thrones, Casablanca, and The Wizard of Oz — with Netflix’s global catalog of original productions, including Stranger Things, Squid Game, Wednesday, and Bridgerton.
Netflix Co-CEO Ted Sarandos reaffirmed that the company’s core mission remains unchanged. “Our mission has always been to entertain the world,” he said, adding that combining Warner Bros.’ “extraordinary” catalog with Netflix’s original productions will enable the company to deliver more content to audiences worldwide.
Warner Bros. Discovery CEO David Zaslav described the announcement as the union of two of the world’s greatest storytelling companies. “By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come,” he stated.
Regulatory Scrutiny and Public Concerns
Given the sheer scale of the transaction, regulators in the United States and Europe are expected to conduct rigorous reviews, particularly regarding the risk of monopoly power in the streaming and film production sectors. Several parties have already raised concerns:
- Some members of the U.S. Congress have previously warned that consolidation of this magnitude could be harmful to consumers.
- Cinema United, an organization representing tens of thousands of movie screens worldwide, has labeled the acquisition an “unprecedented threat” to the theatrical exhibition industry.
- "Titanic" director James Cameron has cautioned that Netflix’s growing dominance could endanger the future of theatrical film releases.
At the core of these criticisms is Netflix’s business model, which prioritizes streaming-first releases and is seen as potentially undermining long-established standards of conventional film distribution.
Completion Timeline
The full completion process is expected to take between 12 and 18 months, aligning with the planned separation of Warner Bros. Discovery’s global network businesses, which is scheduled to be finalized in the third quarter of 2026.
Netflix projects annual cost savings of USD 2–3 billion by the third year after the deal becomes effective and expects the transaction to contribute positively to earnings starting in the second year.
