Netflix Acquires Warner Bros in Historic $82.7 Billion Deal
The entertainment landscape shifted on its axis this morning following the announcement that Netflix acquires Warner Bros in a definitive agreement valued at approximately $82.7 billion. This massive acquisition involves the purchase of the Warner Bros. film and television studios, along with the premium HBO and HBO Max brands. The deal represents a monumental shift in the industry, effectively merging the world’s leading streaming service with a century of Hollywood history and prestige.
As Netflix acquires the media giant, the transaction is structured as a complex mix of cash and stock. The deal places a value of $27.75 per share on Warner Bros. Discovery (WBD). Shareholders can expect to receive $23.25 in cash and $4.50 in Netflix common stock for each share they own. However, this acquisition is contingent upon a major structural change first. The deal is expected to close only after WBD separates its Global Networks division, known as Discovery Global, into a standalone publicly traded company. This separation process is currently slated for completion in the third quarter of 2026.
A Content Powerhouse: Merging Iconic Franchises
The primary driver behind why Netflix acquires Warner Bros is the unparalleled consolidation of intellectual property. By bringing these two media giants together, Netflix will integrate a massive library of beloved titles into its service. Subscribers will eventually see legacy hits like “The Sopranos,” “Game of Thrones,” “The Big Bang Theory,” “Friends,” and “The Wizard of Oz” sitting alongside Netflix originals like “Stranger Things,” “Bridgerton,” and “Squid Game.”
Furthermore, the fact that Netflix acquires the DC Universe allows them to develop content around characters like Batman, Superman, and Wonder Woman. Ted Sarandos, co-CEO of Netflix, emphasized the historic nature of the move. He noted that by combining the incredible library of Warner Bros. with Netflix’s culture-defining titles, they can better fulfill their mission to entertain the world.
How Netflix Won the Bidding War
The path to this agreement was not without conflict. Before the news broke that Netflix acquires the studio, the sale process reportedly attracted interest from other major media players, including Comcast and Paramount. Tensions rose significantly during the bidding, with Paramount claiming the process was unfair. In a letter to WBD CEO David Zaslav, legal representatives for Paramount argued that the process was tilted toward a predetermined outcome that favored Netflix.
Paramount also raised serious concerns regarding regulatory scrutiny. They argued that as Netflix acquires more market share, the deal would face grave uncertainty and opposition from competition law enforcement agencies in the U.S. and abroad, specifically citing Netflix’s dominance in the SVOD market. Despite these protests and the intense behind-the-scenes jockeying, the boards of both companies unanimously approved the Netflix proposal.
What This Means for the Industry and Theatrical Releases
This acquisition signals a potential evolution in Netflix’s business model. Historically, the streamer has focused almost exclusively on at-home viewing. However, the press release states that as Netflix acquires Warner Bros., it expects to maintain current operations and build on its strengths, specifically noting theatrical releases for films.
Greg Peters, co-CEO of Netflix, stated that the acquisition would accelerate their business for decades to come. He believes the deal will allow them to introduce a broader audience to the worlds Warner Bros. has created, creating more value for shareholders and strengthening the entire entertainment industry.
As the deal moves toward a projected closing in 12 to 18 months, the industry will be watching closely to see how regulators respond now that Netflix acquires a new level of influence as a media titan.
