Netflix has acquired Warner Bros Discovery, including its film and television studios, HBO Max and HBO. The move could turn Hollywood’s dynamics upside down. The OTT platform outbid Paramount–Skydance, and Comcast with a
The company has stated that it will be buying the legendary studios in a cash and stock transaction valued at $27.75 per WBD share with a total enterprise value of approximately $82.7 billion. The transaction is expected to close after the previously announced separation of WBD’s Global Networks division, Discovery Global, into a new publicly-traded company, which is now expected to be completed in Q3 2026.
This acquisition brings together two pioneering entertainment businesses, combining Netflix’s innovation, global reach and best-in-class streaming service with Warner Bros.’ century-long legacy of world-class storytelling.
World popular shows and movies such as The Big Bang Theory, The Sopranos, Game of Thrones, The Wizard of Oz and the DC Universe will join Netflix’s extensive portfolio including Wednesday, Money Heist, Bridgerton, Adolescence and Extraction, creating an extraordinary entertainment offering for audiences worldwide.
“Our mission has always been to entertain the world,” said Ted Sarandos, co-CEO of Netflix. “By combining Warner Bros.’ incredible library of shows and movies—from timeless classics like Casablanca and Citizen Kane to modern favourites like Harry Potter and Friends—with our culture-defining titles like Stranger Things, KPop Demon Hunters and Squid Game, we’ll be able to do that even better. Together, we can give audiences more of what they love and help define the next century of storytelling.”
Under the terms of the agreement, each WBD shareholder will receive $23.25 in cash and $4.50 in shares of Netflix common stock for each share of WBD common stock outstanding at the closing of the transaction. The transaction values Warner Bros. Discovery at $27.75 per share, implying a total equity value of approximately $72.0 billion and an enterprise value of approximately $82.7 billion
Netflix bid for WBD: What the deal could mean
According to Reuters, after Netflix buys Warner Bros Discovery’s studio and streaming service, it could lower streaming costs for viewers. The plan is to combine Netflix with HBO Max.
However, the news of the deal has caused ripples across some leading film industry figures. According to Reuters, a few Hollywood figures had asked the US Congress to step in if Netflix succeeds, warning that Hollywood could face economic and institutional problems.
Netflix has long been an OTT giant, and the major concern among experts is how the company will handle the theatrical release of WBD. Netflix prefers releasing films online and only uses theatres for awards or high-profile releases. According to CNBC, Netflix has told WBD it would honour existing contracts for theatrical releases if the deal goes through.
Who were the other bidders of WBD?
Warner Bros Discovery had asked for another round of bids by the end of Thursday, the Wall Street Journal reported. Paramount Skydance has accused Warner Bros Discovery of favouring Netflix, saying the sale process is unfair to other bidders, CNBC reported.
Earlier this week, Warner Bros Discovery had asked potential buyers, including Paramount, Comcast, and Netflix, to improve their offers.
Paramount was aiming to buy the entire company, whereas, in October, Warner Bros Discovery rejected their roughly $60 billion offer and then started an official sale process, Reuters reported.