Netflix is making the biggest gamble in its history: a $72bn deal to acquire the film and streaming businesses of Warner Bros Discovery. The agreement, approved unanimously by both companies’ boards, positions Netflix at the centre of a dramatic shift in Hollywood’s balance of power.
The streaming giant outbid Comcast and Paramount Skydance after a long contest, securing control of some of the world’s most valuable entertainment assets. Warner Bros brings with it storied franchises like Harry Potter, Game of Thrones, and the global reach of HBO Max—brands that have shaped modern pop culture.
Netflix co-chief executive Ted Sarandos said the company was “highly confident” regulators would approve the deal, describing the acquisition as a rare chance to redefine entertainment for the next century. He argued that merging Netflix’s global platform with Warner Bros’ deep catalogue would give audiences “more of what they love.”
Despite the takeover, Netflix says it will continue releasing Warner Bros films in cinemas, while the Warner television studio will maintain the freedom to produce content for third parties. Netflix, however, will keep its own originals exclusive. The company expects $2–3bn in cost savings, mostly from removing overlapping support and technical operations.
The deal is structured as a cash-and-stock offer worth $27.75 per share, valuing the business at $82.7bn when debt is included. It follows Warner Bros’ earlier decision to split its studios and streaming arm from its global networks division—which includes CNN and major European channels—into separate public companies.
Industry analysts say the acquisition could reshape Hollywood, though regulatory approval remains uncertain. Some warn that merging two massive studios may mean fewer films and shows overall, which is likely to spark resistance from unions and creators.
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For viewers, the impact may eventually show up in subscription prices. Analysts suggest Netflix could become more expensive, even as the HBO brand is folded into its broader offering.
Still, Warner Bros chief executive David Zaslav framed the deal as a creative partnership rather than a power shift. By joining forces, he said, the companies hope to ensure that audiences “continue to enjoy the world’s most resonant stories for generations.”
