Netflix to Acquire Warner Bros. Discovery in Landmark $72 Billion Deal

Key Points

• Netflix will acquire Warner Bros. Discovery’s studios and streaming division in a $72 billion cash-and-stock deal.
• The full transaction totals $82.7 billion including debt, with closure targeted for Q3 2026, pending regulatory approval.
• The deal gives Netflix control of HBO, HBO Max, Harry Potter, DC Comics, and other major franchises.
• Netflix beat out Paramount, Skydance, and Comcast in a competitive bidding war.
• Analysts expect antitrust scrutiny, but note major content advantages for Netflix subscribers.

Netflix Makes Historic Move to Acquire Warner Bros. Discovery

In one of the largest entertainment mergers in history, Netflix announced Friday that it will acquire Warner Bros. Discovery’s studios and streaming assets in a sweeping $72 billion cash-and-stock agreement. The deal values Warner Bros. Discovery shares at $27.75 each and hands Netflix control of some of Hollywood’s most valuable intellectual property.

Once debt is factored in, the total transaction reaches $82.7 billion, marking a seismic shift in the global streaming landscape.

A Deal Years in the Making

The acquisition follows Warner Bros. Discovery’s decision to spin off its cable networks into a separate entity, clearing the path for a sale. Netflix ultimately outbid Paramount, Skydance, and Comcast after weeks of negotiations.

The companies expect the merger to close in Q3 2026, pending regulatory approval in the U.S. and Europe.

Netflix co-CEO Ted Sarandos celebrated the agreement, saying the combined libraries will allow the company to “give audiences more of what they love,” blending Warner’s classic catalog — including Casablanca — with Netflix originals like Stranger Things and Squid Game.

Importantly, Netflix has committed to maintaining theatrical releases for Warner Bros. films, easing concerns among theater owners.

What the Acquisition Means for Netflix

A Massive Content Expansion

The deal brings a wave of premium titles into Netflix’s ecosystem, including:

• Game of Thrones
• Friends
• The Sopranos
• Harry Potter
• Batman and the DC Universe

It also gives Netflix access to 130 million HBO Max users, significantly expanding its global footprint.

Market Power and Antitrust Scrutiny

The merger combines the world’s largest streamer with one of Hollywood’s most storied studios — a move certain to draw regulatory attention.

U.S. and European regulators are expected to examine the deal closely due to concerns over market dominance and consolidation.

Operational Strategy

Netflix says it will retain Warner Bros. teams and creative leadership, signaling a desire to preserve the studio’s identity while expanding its global reach.

Warner Bros. Discovery CEO David Zaslav called the merger “a union of storytelling giants.”

Wall Street Reacts

The market responded swiftly to the announcement:

• Netflix stock dipped slightly, with investors cautious about the high valuation and debt load.
• Warner Bros. Discovery shares surged more than 10% thanks to the premium buyout price.

Analysts acknowledge the risks but highlight the long-term value of combining two powerhouse content libraries.

A New Era of Hollywood Consolidation

The acquisition underscores the accelerating consolidation across the entertainment industry as streamers compete for scale, intellectual property, and global reach. Netflix, buoyed by recent revenue gains from its password-sharing crackdown, now secures a pipeline of premium franchises for years to come.

Whether regulators approve the deal will determine how dramatically the Hollywood landscape shifts next.

What Happens Next?

Regulatory reviews will begin in early 2026, with both companies preparing integration plans in the meantime. If approved, the merger will reshape the streaming hierarchy, giving Netflix unprecedented control over some of the world’s most recognizable entertainment brands.