Netflix has agreed to acquire the film and streaming divisions of Warner Bros Discovery in a landmark deal worth $72 billion, marking one of the biggest shake-ups in Hollywood’s modern history. After months of intense bidding that included competitors such as Comcast and Paramount Skydance, Netflix emerged the winner, securing control of major franchises including Harry Potter, Game of Thrones, and the HBO Max streaming platform.
The takeover, which both companies’ boards unanimously approved, is expected to transform Netflix into one of the most powerful content companies in the world. Analysts say the merger could reshape the entire film and media landscape, though it is almost certain to face scrutiny from US competition regulators because of the scale of the combined company.
Netflix co-chief executive Ted Sarandos said the acquisition creates “a rare opportunity” to unify two entertainment giants. By merging Warner Bros’ iconic library — from classics like Casablanca to global hits like Harry Potter — with Netflix’s extensive streaming catalogue, Sarandos said the new entity would “help define the next century of storytelling.”
Warner Bros CEO David Zaslav echoed the sentiment, describing the deal as a partnership between “two of the greatest storytelling companies in the world.” He said joining forces with Netflix ensures that audiences around the world will continue to access “the most resonant stories for generations to come.”
The transaction, valued at $27.75 per share in cash and stock, puts Warner Bros’ total enterprise value — including debts — at around $82.7 billion. As part of the process, Warner Bros will first complete its plan to split its global networks division, which includes CNN and its sports channels, from its movie and streaming arm. The Netflix acquisition covers only the latter.
Experts warn, however, that combining two massive entertainment ecosystems will come with challenges. Paolo Pescatore, a media analyst, called the deal “a huge statement of intent” but noted that the integration process could be complex and may disrupt Hollywood’s traditional structures. Others say the merger could lead to reduced film and TV output, job cuts, and higher streaming prices for consumers.
If approved by regulators, the acquisition would greatly expand Netflix’s studio capacity and deepen its investment in original productions, cementing its dominance in the global streaming market. But with industry unions, rival studios, and competition watchdogs expected to weigh in, the deal is likely to spark months of debate over the future of Hollywood.
