Netflix has prevailed in the bidding war to acquire the studio and streaming assets of Warner Bros. Discovery (WBD), after competing offers from Paramount Skydance and Comcast fell short, sources familiar with the negotiations said Friday.
Under the agreement, Netflix will pay approximately $27.75 per share, giving the assets an equity valuation of around $72 billion — and, including debt, roughly $82.7 billion. The acquisition covers Warner Bros.’ film and television studios, the streaming service HBO Max, and associated content libraries.
To complete the deal, WBD will first spin off its cable and broadcast networks — including CNN and other Discovery Global assets — into a separate company, a process expected to conclude by mid‑2026.
What the Deal Means
If approved by regulators, the merger will give Netflix control of major entertainment franchises and studio output — including blockbuster titles and premium TV properties long associated with Warner Bros. and HBO.
Netflix anticipates generating $2 billion to $3 billion in cost savings per year by year three post‑deal, citing operational synergies. The company has also proposed maintaining theatrical releases for Warner Bros. films, pledging not to abandon the cinema route entirely.
Backlash and Antitrust Concerns
The announcement has stirred immediate controversy. Industry groups, including the Writers Guild of America (WGA) and Directors Guild of America (DGA), along with theater‑owner associations such as Cinema United, warned that the deal could reduce competition, limit creative diversity, threaten jobs, and undermine theatrical cinema.
Regulators in the U.S. and Europe are expected to examine the deal closely under antitrust laws — given the scale and potential market power of a combined Netflix–Warner entity.
For now, as Warner Bros. Discovery moves forward with the spin‑off of its cable assets, Netflix and WBD say they’re targeting closure of the deal within 12 to 18 months, pending regulatory approval.
