LOS ANGELES, CA – In a move that promises to reshape the global entertainment industry fundamentally, Netflix has triumphed in the bidding war for Warner Bros. Discovery (WBD) assets, announcing a deal that would combine the streaming giant with one of Hollywood’s largest and most historic studios.
Netflix announced the $72 billion deal, plus debt, on Friday morning. The acquisition hinges on WBD’s planned split into two publicly traded companies in 2026. Once the split occurs, Netflix intends to acquire the Warner half, which includes the legendary movie and TV studio and the HBO Max streaming service. The other half, Discovery Global, which houses CNN and other cable channels, will remain separate.
The merger, if completed, would combine two of the biggest streamers and give Netflix control over some of the industry’s most valuable intellectual property, including:
- Batman
- Harry Potter
- Game of Thrones
The deal is a surprise turn, as rivals Paramount and Comcast had also submitted offers for WBD, with Paramount widely viewed as the frontrunner.
Netflix Co-CEO Ted Sarandos addressed the unexpected move on a call with Wall Street analysts, acknowledging the company’s historical preference for “builders, not buyers.” He called it a “rare opportunity” that aligns with Netflix’s mission to entertain the world.
The acquisition faces a rigorous global review, with antitrust concerns already raised.
- Senator Mike Lee wrote on X that the deal “should send alarm to antitrust enforcers around the world.”
- Analysts anticipate a political and legal battle, particularly given the size of the combined entity.
Netflix executives, however, previewed their arguments for regulators, asserting that the assets are complementary and the deal will create “more opportunities for the creative community.” Co-CEO Greg Peters emphasized that Netflix’s global reach and proven model can introduce a broader audience to Warner Bros.’ creations.
The deal is already drawing fire from within the industry, particularly from movie theater owners. Cinema United, a trade association, called the agreement an “unprecedented threat to the global exhibition business,” citing Netflix’s historical reluctance toward traditional theatrical releases.
In response, Netflix stated it “expects to maintain Warner Bros.’ current operations and build on its strengths, including theatrical releases for films.”
If the merger clears regulatory hurdles, one analyst noted, “the streaming wars are effectively over,” making Netflix the “undisputed global powerhouse of Hollywood.”
The Stock Market reaction following the announcement, Netflix’s (NFLX) stock fell more than 2% in early trading, while Warner Bros. Discovery’s (WBD) stock gained 2%.
