Netflix to Acquire Warner Bros. Discovery Assets in Historic 72.7B Deal

Netflix moves to acquire key Warner Bros. Discovery assets in one of the largest media deals ever, reshaping the streaming landscape.

Netflix announced today that it has reached a sweeping agreement to acquire significant assets of Warner Bros. Discovery, bringing an end to a highly competitive bidding battle that also drew interest from Paramount Skydance and Comcast. The landmark deal, valued at $72 billion in equity and $82.7 billion in enterprise value, instantly becomes one of the largest media acquisitions in history.

Under the agreement, Netflix will take ownership of the Warner Bros. film studio and HBO Max, while Warner Bros. Discovery proceeds with its planned spinout of Discovery Global, home to powerhouse cable brands including CNN, TNT, Discovery Channel, and others.

The purchase folds one of Hollywood's oldest and most storied studios into the world's most powerful streaming platform. HBO's prestige catalog, including "The Sopranos", "Game of Thrones", and "The White Lotus", will also join Netflix's growing empire.

On an investor call, Netflix co-CEO Ted Sarandos acknowledged that the move may surprise longtime industry observers, saying, "We have been known to be builders, not buyers. We already have incredible shows and movies and a great business model… This is a rare opportunity. It's going to help us achieve our mission to entertain the world and bring people together through great stories."

Both companies' boards unanimously approved the transaction, which now heads into what is expected to be an intense regulatory review process. The closing is targeted for 12 to 18 months after Discovery Global officially separates, likely in late 2026.

Netflix agreed to a massive $5.8 billion reverse breakup fee should regulators block the deal. Warner Bros. Discovery would owe $2.8 billion if it backs out to pursue another bidder.

The scale of the combined streaming subscriber base, Netflix's 300 million global customers and HBO Max's 128 million, immediately raises antitrust concerns. Rival bidders, especially Paramount, have already argued that the sale process unfairly favored Netflix and could damage competition.

Regulators in the U.S. and Europe are expected to dissect the deal extensively, with labor groups already urging intervention. The Writers Guild of America issued a blistering statement, warning the acquisition would "eliminate jobs, push down wages… raise prices for consumers, and reduce the volume and diversity of content."

The acquisition will not take effect overnight. Netflix says it intends to "maintain Warner Bros.' current operations," including theatrical releases-a key part of the studio's identity. But Sarandos also hinted at shifts ahead, suggesting release windows could "evolve" to become more consumer-friendly and quicker to streaming.

This possibility has alarmed major theater owners, who depend on long theatrical runs for blockbusters like Barbie or upcoming DC films. Cinema United called the acquisition "an unprecedented threat to the global exhibition business," warning that Netflix's incentives run counter to theatrical success.

Similar concerns are emerging from producers, who recently issued warnings to Congress that Netflix has "no incentive to support theatrical exhibition."

The Netflix-Warner Bros. agreement marks another massive move in a decade defined by media megamergers: Amazon-MGM, Disney-Fox, Skydance-Paramount, and Warner Bros.-Discovery's own 2022 merger.

For Netflix, this deal expands its content library with some of the most valuable entertainment assets ever created, from "Friends" and "The Big Bang Theory" to "Looney Tunes" and DC superheroes. And while Netflix already licenses many legacy series, owning them outright dramatically reduces long-term costs.