Hollywood just flipped a major page — and Netflix is the one holding the pen. After a months-long bidding war that had studios, executives, and creatives bracing for impact, the streamer has officially entered a definitive agreement to acquire Warner Bros., including HBO, HBO Max, and its storied film and TV studios, in a deal valued at $82.7 billion in enterprise value (about $72 billion in equity).
It’s a move that doesn’t just shake the table; it turns the whole industry on its axis.
Under the agreement, Warner Bros. Discovery shareholders will receive $23.25 in cash and $4.50 in Netflix stock per share. The transaction is expected to close after Discovery Global — home to channels like CNN, TNT, and Discovery — is spun off into its own publicly traded company in Q3 2026.
A New Entertainment Superpower
For Netflix, this isn’t just an acquisition — it’s a historic pivot. A company that has long bragged about “building, not buying” just made the biggest purchase in its history.
Netflix co-CEO Ted Sarandos pitched the merger as a storytelling alliance with global impact:
“Our mission has always been to entertain the world. By combining Warner Bros.’ incredible library of shows and movies — from timeless classics like Casablanca to modern favorites like Harry Potter and Friends — with our culture-defining titles like Stranger Things and Squid Game, we’ll be able to do that even better.”
Co-CEO Greg Peters kept it simple: the acquisition will “accelerate our business for decades to come.”
Once the deal closes, Netflix will take control of:
- Warner Bros. film and TV studios
- HBO and HBO Max
- DC Studios
- Prestige libraries including Game of Thrones, The Sopranos, The Wizard of Oz, The Big Bang Theory, and Friends
Netflix has pledged to maintain Warner Bros.’ current operations, including theatrical releases — a major reassurance for an industry nervous about streaming-first strategies.
David Zaslav, CEO of Warner Bros. Discovery, framed the partnership as a continuation of legacy:
“For more than a century, Warner Bros. has shaped culture and thrilled audiences. By coming together with Netflix, we ensure these stories reach even more people for generations to come.”
How We Got Here
The final stretch of the bidding war was dramatic enough to deserve its own miniseries. Paramount Skydance and Comcast fought hard, submitting sweetened bids. But Netflix ultimately won with an offer that was mostly cash, a key factor in Warner Bros. Discovery’s acceptance.
Paramount raised concerns about antitrust issues and fairness, claiming the sale seemed “predetermined” in Netflix’s favor. Both boards, however, unanimously approved the deal.
The agreement includes a $5.8 billion reverse breakup fee for Netflix if regulators block the deal, while Warner Bros. Discovery would owe $2.8 billion if it walks away.
What This Deal Really Means
- A New Entertainment Powerhouse – Netflix now owns legendary studios, DC, HBO, and franchises that span generations. This gives the streamer unprecedented influence over content creation, distribution, and marketing worldwide.
- Theaters Face a Turning Point – While Netflix promises to maintain theatrical releases, smaller theater chains could feel the pressure, and traditional release windows may shift under Netflix’s streaming-first approach.
- Opportunities and Challenges for Creators – For filmmakers, the deal could mean access to bigger budgets and global audiences. But fewer competitors may also mean less choice in how and where stories are told.
- Streaming Wars Redefined – Netflix’s expanded library and production capacity could force mid-sized and smaller streaming services to consider mergers or risk falling behind.
- Business and Growth Impacts – The deal strengthens Netflix’s content portfolio and could generate billions in annual savings, benefiting shareholders, talent, and the service’s long-term strategy.
The Bottom Line
This isn’t just another megadeal. It’s a redefining moment for Hollywood — how stories are made, how they travel, and who gets to shape culture.
With Netflix now holding some of Hollywood’s most powerful storytelling engines, the next era of film and TV is officially on the way.