In a historic move, Netflix has agreed to acquire Warner Bros Discovery’s TV & film studios and its streaming business for $72 billion, transforming Netflix from a disruptor into a full-scale traditional studio powerhouse.
🔹 What Netflix Gets
- Iconic franchises: Harry Potter, Game of Thrones, DC Universe (Batman, Superman)
- A century-old library of premium content
- Nearly 130 million streaming subscribers from HBO Max
- WV gaming assets — including billion-dollar hit Hogwarts Legacy
Netflix outbid Paramount Skydance, offering ~$28 per share, despite reports that Paramount offered $30.
🔹 Deal Structure
- $23.25 cash + ~$4.50 in Netflix stock per WBD share
- Total equity value: $72B
- Including debt: $82.7B
- Premium: 121% to WBD’s Sep. 10 price
- Breakup fees:
- Netflix pays WBD $5.8B if it fails
- WBD pays Netflix $2.8B if it backs out
- Expected annual synergies: $2–3B by year 3
Closing expected after WBD spins off Discovery Global in Q3 2026.
🔹 Antitrust & Industry Pushback
Regulators in both the U.S. and EU are expected to apply heavy scrutiny, with concerns over:
- Market concentration in streaming
- Reduced competition for Hollywood talent
- Impact on theatrical distribution
Cinema United called it an “unprecedented threat” to theaters worldwide.
Congress members and unions have also raised concerns.
🔹 Netflix’s Strategic Rationale
Netflix aims to:
- Secure long-term IP rights (reduce dependence on external studios)
- Strengthen global content dominance
- Expand into gaming with WBD assets
- Boost U.S. content production
- Create optional bundled offerings with HBO Max
Co-CEO Greg Peters said the combined platforms could be bundled for consumers at lower cost.
🔹 Market Reaction
- WBD +3.2%
- Netflix –0.2%
- Paramount –6.1%
🔹 Why This Matters
This acquisition is the largest in the history of Hollywood and may redefine global entertainment:
- Netflix becomes both dominant streamer & major studio
- Competitors (Disney, Paramount, Amazon, Apple) face elevated pressure to consolidate
- The deal accelerates the merger wave across media, gaming, and AI-enhanced content production
This will be one of the most closely watched transactions of the decade.