Netflix has agreed to buy Warner Bros Discovery’s TV, film and streaming operations for $72 bn, giving the streaming giant control of one of Hollywood’s best known studios. The deal marks a dramatic shift for Netflix, which built its reputation by disrupting traditional entertainment models.
Co-CEO Ted Sarandos told investors: «I know some of you are surprised that we’re making this acquisition» and said it was a rare chance to advance Netflix’s mission «to entertain the world».
Netflix outbid Paramount Skydance after weeks of competition, offering nearly $28 per share. The acquisition gives it access to Warner Bros’ extensive catalogue, including «Game of Thrones», «Harry Potter» and DC’s superheroes.
The takeover is expected to face strong scrutiny in the US and Europe due to HBO Max’s 130 mln subscribers. Analysts and industry groups have warned of reduced competition, while some members of Congress have voiced concern. Cinema United called the deal an «unprecedented threat» to cinemas.
Netflix argues the merger will expand choice for viewers and create more opportunities for creative talent. Co-CEO Greg Peters said the company could bundle HBO Max with Netflix or introduce it through other pathways.
Warner Bros Discovery shareholders will receive cash and Netflix stock valued at $27.75 per share. The deal is expected to close after Discovery Global is spun off in late 2026. Netflix estimates annual cost savings of up to $3 bn within three years.
The purchase also supports Netflix’s push into gaming. Warner Bros has delivered rare sector successes such as «Hogwarts Legacy», which has earned more than $1 bn.
