LOS ANGELES — In a blockbuster move that is poised to shake up Hollywood and the streaming world, Netflix has announced it will acquire Warner Bros. Discovery (WBD) — including its storied Warner Bros. film and television studios and streaming service HBO Max — in a deal valued at about US$82.7 billion in enterprise value (roughly $72 billion in equity).
Under the agreement reached Friday, Warner Bros. shareholders will receive $27.75 per share, split between cash and Netflix stock — namely, $23.25 in cash and $4.50 in Netflix shares per WBD share. The companies said the transaction is expected to close after the planned spin-off of WBD’s Global Networks division (which includes channels like CNN) into a separate publicly traded entity, a process projected to be completed by the third quarter of 2026.
The deal brings together two of the most influential institutions in entertainment. With Warner Bros.’ century-long legacy of iconic films and franchises — from the classic Hollywood catalog to modern blockbusters — now merging with Netflix’s vast streaming reach, the combined content library will rank among the largest in entertainment history. According to Netflix, the acquisition will preserve Warner Bros.’ current operations and promises more choice and value for global consumers.
The acquisition ends a fierce bidding war in which rivals such as Paramount Skydance and Comcast also vied for WBD’s assets. Netflix’s offer — largely cash-based — ultimately prevailed.
While the companies hailed the union as a “defining moment” for storytelling in the 21st century, the deal is already drawing scrutiny. Critics argue that combining Hollywood’s storied studio system with the world’s dominant streaming platform could reduce competition, limit theatrical releases, and leave theaters — especially smaller, independent ones — facing steep challenges.
Supporters, however, contend that the deal could streamline content distribution, reduce redundancies, and bring beloved franchises to a global audience more efficiently. Netflix executives say they intend to honor existing theatrical distribution commitments, signaling a possible middle ground between streaming-first and cinema release models.
As the entertainment world watches, the union of Netflix and Warner Bros. – and the consequent re-shaping of Hollywood’s studio and streaming landscape — looks set to redefine how stories are made, delivered, and consumed across the globe.
