Netflix has agreed to buy Warner Bros Discovery’s TV, film studios, and streaming division for $72 billion. The deal will give Netflix control of one of Hollywood’s most valuable entertainment assets.
This acquisition marks a major shift for Netflix, which has mostly built content rather than buying studios. Netflix Co-CEO Ted Sarandos called the opportunity “rare” and said it will help the company entertain audiences worldwide.
Netflix outbid rivals, offering nearly $28 per share. Paramount Skydance, another major contender, had made multiple unsolicited bids to acquire Warner Bros Discovery, including cable TV assets.
The deal gives Netflix access to Warner Bros’ extensive content library. This includes popular franchises like Game of Thrones, Harry Potter, and DC superheroes such as Batman and Superman. Netflix said the acquisition will help define the “next century of storytelling.”
The transaction is expected to face antitrust scrutiny in the U.S. and Europe. Critics say the deal may reduce competition in streaming and affect movie theaters. Netflix, however, promised to continue theatrical releases and provide more content to subscribers.
Under the deal, Warner Bros Discovery shareholders will receive $23.25 in cash and $4.50 in Netflix stock per share. The total valuation is approximately $72 billion in equity, rising to $82.7 billion including debt. Netflix also expects $2–3 billion in annual cost savings within three years.
Analysts note that Netflix is aiming to secure long-term rights to hit shows and films. The deal also strengthens Netflix’s expansion into gaming, building on successes like Hogwarts Legacy.
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This acquisition positions Netflix as both a leading global streaming service and a major Hollywood studio. It could reshape the entertainment industry and change how audiences access movies and television worldwide.
