Netflix confirmed on Friday that it has reached a deal to acquire the film and television studios of Warner Bros. Discovery, along with its streaming division, for $72 billion. If regulators approve the sale, the transaction will shift one of Hollywood’s most historic assets into the hands of the company that reshaped modern streaming.
The agreement would give Netflix control of a catalog that has shaped the global entertainment business for nearly a century, from classic films to defining television franchises. It also represents Netflix’s most aggressive move yet to expand beyond licensed content and secure long-term dominance in a crowded streaming market.
A potential reshaping of Hollywood’s balance of power
The purchase includes Warner Bros. film and TV studios, HBO and HBO Max, and franchises such as Harry Potter, Game of Thrones, The Sopranos, The Big Bang Theory, The Wizard of Oz, and titles from the DC Universe. Netflix said the deal will close only after Warner Bros. and Discovery Global formally split, a step expected in the third quarter of 2026.
Netflix co-CEO Ted Sarandos said the combination could “define the next century of storytelling.” Warner Bros. Discovery CEO David Zaslav described the announcement as a union between “two of the world’s leading storytelling companies.”
The agreement excludes Warner’s traditional cable networks, including CNN and TNT.
The acquisition follows a competitive bidding process. Paramount/Skydance and Comcast also submitted proposals, but Netflix emerged with the strongest offer. The company offered mostly cash and pledged to keep Warner Bros.’ theatrical releases in cinemas, a notable shift for Netflix, which has long resisted full theatrical strategies.
The final price tag reaches $82.7 billion when Warner Bros. Discovery’s debt is included. The $72 billion figure reflects the equity value paid to shareholders, while Netflix will also assume outstanding liabilities once the takeover is complete.
Regulatory hurdles
The deal will face extensive scrutiny in the United States. A group of filmmakers wrote to Congress expressing “serious concerns” about the acquisition, arguing that Netflix lacks incentives to support theatrical distribution. Critics say a merger of this scale risks consolidating too much power in the hands of one streaming platform, potentially shrinking the number of companies capable of financing films for cinemas.
Analysts interviewed by Reuters also noted uncertainty about whether the acquisition solves Netflix’s immediate market challenges. According to the IG Group, Netflix and HBO Max have substantial subscriber overlap, limiting the potential for sudden growth. The analyst added that concerns about competition, along with possible intervention from the White House, may complicate approval.
Netflix has argued that integrating HBO Max could lower costs for consumers by offering bundled access to both services. Executives say the acquisition will reduce reliance on outside studios and accelerate the company’s expansion into gaming, live events and other consumer-facing ventures.
In October, Warner Bros. Discovery reportedly rejected a $60 billion offer from Paramount before initiating a formal sale process. Netflix’s ability to offer a mostly cash-based proposal helped finalize the agreement.
For now, the industry is waiting to see how U.S. regulators respond. If the deal clears government review, it will mark one of the most consequential shifts in the global entertainment landscape in decades, giving Netflix a level of control unmatched by any other modern media company.
