Netflix to Acquire Warner Bros. Discovery in Historic Deal
Netflix has agreed to buy Warner Bros. Discovery. It is a historic combination. The world’s largest paid streaming service will join one of Hollywood’s oldest studios.
Deal Terms
The deal was announced on Friday. Warner Bros. shareholders will receive $27.75 per share in cash and Netflix stock. The equity value of the deal is $72 billion. The enterprise value is about $82.7 billion.
Before closing, Warner Bros. will spin off CNN, TBS, and TNT. This step is part of the planned restructuring.
A Major Shift for Netflix
The acquisition marks a dramatic shift for Netflix. The company has never made a deal of this size. Netflix built its empire without owning a major studio. It licensed content first, then expanded into originals. Now it will own a vast library for the first time.
What Netflix Gains
Netflix will gain the HBO network. It will also acquire hit shows such as The Sopranos and The White Lotus. Warner Bros. brings major assets. These include its Burbank studios. It also brings a massive archive, including Harry Potter and Friends.
Bidding Battle
Warner Bros. went up for sale in October. Several companies showed interest. Paramount Skydance and Comcast also pursued the deal. The bidding became contentious. Paramount accused Warner Bros. of favoring Netflix.
Industry Context
Traditional TV is shrinking fast. Viewers are moving to streaming. Warner Bros.’ cable division saw revenue fall 23% last quarter. Subscribers canceled. Advertisers pulled back.
Netflix, founded nearly 30 years ago as a DVD‑by‑mail service, ended 2024 with $39 billion in revenue. Warner Bros., founded in the 1920s, reported similar annual sales.
Regulatory Concerns
The deal will face antitrust scrutiny in the US and Europe. Some lawmakers have raised concerns. Representative Darrell Issa warned regulators that the merger could harm consumers. Netflix argues that YouTube is one of its biggest competitors.
Hollywood Reacts
The news sent shockwaves through Hollywood. Netflix rarely releases films in theaters. It prefers streaming-first distribution. Some original films get limited theatrical runs. The industry is watching closely.
Tech Newsroom 24/7 