In a seismic shift for the global entertainment landscape, streaming titan Netflix announced on Friday it has reached a definitive agreement to acquire the film studio and streaming business of Warner Bros. Discovery for a staggering US$72 billion.
The Details of a Historic Merger
The landmark agreement, confirmed on December 5, 2025, would unite the pioneering subscription streamer with one of Hollywood's most storied studios. Warner Bros., founded over a century ago, is the creative force behind cinematic classics like Casablanca and modern blockbuster franchises including Harry Potter and the DC Comics universe. The deal also grants Netflix control of the coveted HBO Max content library, home to acclaimed series like Game of Thrones and The Sopranos.
Netflix prevailed as the buyer following an intense, weeks-long bidding war that reportedly involved media giants Comcast and Paramount Skydance. The transaction has received unanimous approval from the boards of directors of both companies.
David Zaslav, President and CEO of Warner Bros. Discovery, hailed the union in a statement. "For more than a century, Warner Bros. has thrilled audiences, captured the world’s attention, and shaped our culture," he said. "By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come."
Financial Structure and Timeline
The complex financial terms of the acquisition specify that each Warner Bros. Discovery shareholder will receive $23.25 in cash and $4.50 in Netflix common stock for every share of WBD stock they own. This values Warner Bros. Discovery at $27.75 per share, representing a total equity value of approximately $72.0 billion and an enterprise value of around $82.7 billion.
The completion of the takeover is contingent on Warner Bros. first finalizing its plan to spin off its global networks unit, Discovery Global, into a separate publicly traded company. This spin-off is anticipated to be completed by the third quarter of 2026. Following that, the Netflix acquisition is projected to close within 12 to 18 months, subject to regulatory approvals.
Potential Regulatory Hurdles and Industry Impact
Analysts were quick to flag the significant regulatory challenges this industry-altering merger will likely face. The companies will need clearance from competition authorities, primarily in the United States, but potentially from regulators in other jurisdictions as well.
Tom Harrington, head of television at Enders Analysis, told the BBC that the deal would fundamentally "reorient Hollywood." He noted the inherent tension in the merger, stating, "Netflix has always had some limited use for the cinema but generally its offering undermines it."
Harrington and other industry observers warn the consolidation could lead to substantial changes for consumers and creators alike, including:
- Potential reductions in overall TV and film production as the combined entity seeks efficiencies.
- Higher costs for consumers, with Netflix subscriptions likely to become more expensive.
- A probable shuttering or de-emphasis of the HBO Max platform, though its content would live on within Netflix.
Despite these concerns, the analysts also predict the deal could result in increased total subscription revenue industry-wide due to Netflix's massive global household penetration. The coming months will see intense scrutiny from regulators as they weigh the creation of a new entertainment behemoth against the principles of market competition.