NETFLIX TRANSFORMS HOLLYWOOD: HISTORIC WARNER BROS. DISCOVERY ACQUISITION FOR $82.7 BILLION
An unexpected move has once again shaken the global entertainment landscape. The industry holds its breath as the battle for streaming is redefined.
Netflix has agreed to acquire Warner Bros. Discovery (WBD) in a deal valued at $82.7 billion, a move that reshapes the global entertainment map and marks the largest purchase in the streaming giant’s history, the companies announced jointly on Friday.
Netflix’s winning bid was $27.75 per share, surpassing the $24 offers from Paramount and Comcast, which also participated in the process. The acquisition includes Warner Bros.’ film and television studios, as well as HBO and HBO Max, assets considered strategic due to their historical significance in the industry and their catalog of iconic titles.
The deal’s closing depends on the previously announced separation of Discovery Global, the television-focused unit that will retain properties such as CNN, TNT Sports, Discovery+, and free-to-air channels in Europe. WBD expects to complete this process by summer 2026, after which Netflix will proceed with the purchase. The split will allow Discovery Global and the remaining Warner assets to become independent, publicly traded companies.
The announcement shook Hollywood and created market tension. Netflix shares fell 4.26% following the opening of Wall Street, while Warner Bros. Discovery shares rose 3.34%. Analysts noted that the initial reaction reflected concerns about the financial and regulatory magnitude of the deal, as well as the future integration of assets.
The bidding for WBD began in October, when Paramount made an initial offer of $27 per share for the entire company. Netflix and Comcast joined the negotiations afterward, which took place in two rounds, the most recent on December 1. Paramount accused the process of favoritism toward Netflix this week, though it provided no formal evidence.
The agreement will also undergo review by regulators in the United States and other countries. Some lawmakers have expressed concerns about competition. “Netflix’s ambition to buy its main competitor should alert antitrust authorities,” Senator Mike Lee said, warning that the deal “raises serious competition concerns.”
In response, Netflix argues that the companies’ assets are complementary. Greg Peters, co-CEO of the platform, said Warner Bros. “has helped define entertainment for more than a century” and that Netflix’s global reach will allow these contents to reach a wider audience.
The acquisition will merge HBO and Warner Bros.’ Catalogs including series and films such as The Sopranos, Game of Thrones, The Big Bang Theory, The Wizard of Oz, and the DC universe with Netflix productions like Stranger Things, Money Heist, Wednesday, Bridgerton, and The Squid Game.
Ted Sarandos, co-CEO of Netflix, stated that the deal reinforces the company’s mission to “entertain the world,” uniting classics such as Casablanca and Citizen Kane with contemporary franchises like Harry Potter. WBD CEO David Zaslav said the transaction “brings together two of the world’s most important storytelling companies.”
The film industry also reacted with caution. Cinema United, representing movie theater owners, warned that the deal “poses an unprecedented threat” due to Netflix’s history of limited theatrical releases. Netflix assured it would maintain Warner Bros.’ current operations and “leverage its strengths, including theatrical releases.”
If the deal passes regulatory hurdles, analysts agree that the combination of Netflix and HBO will redefine the streaming landscape. A recent Bank of America report stated that, if completed, “the streaming war will be over,” consolidating Netflix as the dominant force in the sector.