Netflix Acquires Warner Bros Discovery in $82.7 Billion Deal, Paving the Way for a Streaming Giant

Netflix has officially agreed to acquire Warner Bros Discovery (WBD) in an $82.7 billion deal, marking the largest consolidation in the entertainment industry since Disney's acquisition of Fox in 2019. Netflix will pay $27.75 per share, valuing WBD at approximately $72 billion excluding debt. The acquisition includes WBD’s vast catalog of films and series and the prestigious HBO Max streaming service, promising Netflix subscribers extensive new content.

This merger significantly expands Netflix’s content library, adding classics like "Casablanca" and "Citizen Kane," lucrative franchises such as "Harry Potter" and "Batman," and popular series including "Friends" and "Game of Thrones." Netflix CEO Ted Sarandos highlighted that combining these titles with Netflix’s own productions, like "Stranger Things," will enhance the entertainment experience for their global audience.

The deal is subject to regulatory and shareholder approvals and is expected to be finalized within 12 to 18 months. Netflix anticipates annual savings of $2 to $3 billion three years after the acquisition and plans to maintain Warner Bros’ film releases, expanding its U.S. production capabilities and investing further in original content.

However, the acquisition has drawn concerns regarding Netflix’s growing market dominance. Industry insiders and the White House have raised warnings about the potential monopolistic effects and the impact on traditional cinema, fearing that Netflix’s focus on streaming may further threaten theatrical releases. Filmmakers have expressed anxiety over a possible prioritization of direct-to-streaming content over traditional box office.

Previously, Warner Bros had planned to split its streaming and studio arms by Q3 2026, just before the acquisition’s completion. The competitive bidding process saw Netflix outpace rivals such as Paramount Skydance and Comcast. Analysts view this acquisition as a defining moment in the battle for streaming supremacy and the future structure of Hollywood studios.