Netflix is set to take control of one of Hollywood’s most established producers by agreeing to acquire Warner Bros. Discovery’s TV and film studios and streaming platform in a massive $72 billion deal.
The deal, which came after weeks of intense competition, was finalized when Netflix’s offer of approximately $28 per share beat Paramount Skydance’s offer of $24. This acquisition will fundamentally change the balance of power in the industry by bringing the rights to major series such as “Game of Thrones,” “DC Comics,” and “Harry Potter” to Netflix. The company thus aims to further solidify its global position, which it has built without resorting to large studio acquisitions. Netflix co-CEO Ted Sarandos said, “Together, we can offer viewers more than they love and shape the next century of storytelling.” Analysts note that Netflix wants to secure long-term streaming rights to popular productions and reduce its reliance on outside studios. However, the deal could face strict competition investigations in both Europe and the US due to the change of ownership of HBO Max, which has nearly 130 million subscribers.Paramount
objected, arguing that the sale process favored Netflix. Netflix, on the other hand, argues that offering HBO Max and Netflix together in a combined package could provide consumers with lower costs. Furthermore, it sends the message that the industry’s content diversity will be preserved by guaranteeing that Warner Bros. films will continue to be shown in theaters.Terms of the Agreement
According to the agreement, which consists of a combination of cash and stock, Warner Bros. Discovery shareholders will receive $23.25 in cash and $4.50 worth of Netflix stock per share. Thus, the company changes hands at a total valuation of $27.75/share, with a market value of approximately $72 billion; Including debt, this figure rises to $82.7 billion.
The deal is expected to be completed in the third quarter of 2026, following Warner Bros Discovery’s separation of its Discovery Global unit into a separate company. Netflix anticipates annual cost savings of $2–3 billion in the third year of the merger.
