BLOCKBUSTER ACQUISITION:
HOLLYWOOD, CA—In a seismic shift that will fundamentally reshape the global media and entertainment landscape, Netflix has emerged victorious in a month-long bidding war, announcing a definitive agreement to acquire Warner Bros. Discovery’s (WBD) film and television studios, HBO, and the HBO Max streaming division.
The massive cash-and-stock transaction is valued at approximately $72 billion in equity (and an enterprise value of $82.7 billion including debt), marking Netflix’s largest acquisition ever and cementing its position as the undisputed titan of the streaming world.
The Deal Details
The acquisition will see the Warner Bros. studios and HBO Max absorbed into Netflix’s massive global operation. WBD will first split into two companies before the deal closes, expected by the third quarter of 2026:
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Acquired by Netflix: Warner Bros. film and TV studios, HBO, HBO Max, and its extensive content library.
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Spun Off: WBD’s Global Networks division, including cable channels like CNN, TBS, and TNT, will be spun off into a new, publicly-traded company called Discovery Global.
Netflix prevailed over rival bidders, which included Paramount Skydance and Comcast, by offering a higher, predominantly cash bid valued at $27.75 per WBD share.
Why This Is a Game Changer
This acquisition provides Netflix with the one element its competitors—like Disney—already commanded: a deep, century-old library of iconic intellectual property (IP):
| Acquired Intellectual Property (IP) | Impact |
| HBO Library | Game of Thrones, The Sopranos, Succession, The White Lotus, The Last of Us. |
| DC Comics Universe | Batman, Superman, Wonder Woman, directly challenging Disney’s Marvel dominance. |
| Warner Bros. Franchises | Harry Potter, Lord of the Rings, classics like Casablanca and The Wizard of Oz. |
| TV Classics | Friends, The Big Bang Theory. |
Netflix co-CEO Ted Sarandos stated that the deal combines Netflix’s “global reach and best-in-class streaming service with Warner Bros.’ century-long legacy of world-class storytelling.”
Anticipated Challenges and Consumer Impact
While the deal is a victory for Netflix, it is immediately expected to face intense antitrust scrutiny from regulators in the U.S. and Europe, given the massive market consolidation.
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Antitrust Concerns: Critics, including rival bidder Paramount, argue that the combination of the two largest streaming services could reduce competition, lead to higher prices, and decrease content diversity.
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Theatrical Release: Netflix has provided assurances that it will maintain Warner Bros.’ current operations and continue to release its studio films in cinemas, directly addressing concerns that the deal would dismantle theatrical exhibition.
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Consumer Value: To preempt regulatory concerns, Netflix has argued that the combined entity will allow them to offer consumers “more choice and greater value,” potentially through lower-cost bundled subscriptions that include both Netflix and HBO content.
The combination is also expected to generate between $2 billion and $3 billion in annual cost savings for Netflix by the third year after closing, a key driver for the deal’s immense valuation.
