In a definitive move that instantly reshapes the entire entertainment landscape, Netflix, Inc. announced Friday it has acquired the film and television studios of Warner Bros. Discovery (WBD) for an enterprise value of approximately $82.7 billion. The cash and stock transaction gives the world’s leading streaming service control over one of Hollywood’s most prestigious and century-old studios, including HBO, the DC Universe, and the vast library of Warner Bros.’ iconic content.
The acquisition, valued at $27.75 per WBD share, is a dramatic departure from Netflix’s historic preference for organic growth and represents a strategic victory in a fierce bidding war. It will combine Netflix’s modern, global streaming muscle (with hits like Stranger Things and Squid Game) with Warner Bros.’ immense heritage, which includes classics like Casablanca, modern favorites like Harry Potter and Friends, and premium cable content such as Game of Thrones and The White Lotus.
“Our mission has always been to entertain the world,” said Netflix co-CEO Ted Sarandos in a statement. “By combining Warner Bros.’ incredible library… with our culture-defining titles, we’ll be able to do that even better.” The deal is expected to be a major boost to Netflix’s content offerings and is anticipated to yield at least $2-3 billion in annual cost savings by the third year post-closing.
However, the path to finalization is fraught with hurdles. The deal is contingent on WBD first spinning off its Global Networks division—which includes CNN and other cable channels—into a new entity called Discovery Global, a separation now expected by the third quarter of 2026. Most significantly, the merger is guaranteed to face intense scrutiny from regulators in the United States and Europe.
Critics, including rival media executives and key political figures, have voiced serious antitrust concerns. Senator Elizabeth Warren called the proposed merger an “anti-monopoly nightmare,” warning it could lead to fewer choices and higher prices for consumers. Labor guilds, including the Directors Guild of America, have also raised concerns about the impact on creative talent and industry jobs. To mitigate regulatory risk, Netflix has included an unusually large breakup fee, signaling its commitment to seeing the transaction through. Despite promises from Netflix to honor existing theatrical commitments for Warner Bros. films, the acquisition is seen by many in the cinema industry as an “unprecedented threat” to moviegoing, as the combined entity will command significantly more power in the theatrical release window negotiations. The transaction is projected to close in 12 to 18 months following the WBD cable spin-off and regulatory approvals.
🔗 Article Sources and Links
- Netflix to Acquire Warner Bros. Discovery for $82.7 billion, Gaining HBO and Franchises like Game of Thrones, DC Comics
- Netflix agrees to buy Warner Bros Discovery studio and streaming business in $83bn deal
- Netflix Wins Bidding War For Warner Bros. Discovery With $83 Billion Deal
- ‘This merger must be blocked’: Netflix-Warner Bros deal faces fierce backlash
- NETFLIX TO ACQUIRE WARNER BROS. FOLLOWING THE SEPARATION OF DISCOVERY GLOBAL FOR A TOTAL ENTERPRISE VALUE OF $82.7 BILLION (Official Press Release)
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