Netflix is set to become an even bigger force in Hollywood after agreeing to acquire Warner Bros Discovery’s film and streaming divisions for $72 billion.
The streaming platform outbid rivals such as Comcast and Paramount Skydance, securing the prized assets of one of the most influential studios in entertainment history.
Warner Bros owns globally popular franchises including Harry Potter and Game of Thrones, alongside the HBO Max streaming service.
The deal, which still requires approval from competition authorities, is expected to create a major new entertainment powerhouse, reshaping the streaming and film landscape.
Netflix co-chief executive Ted Sarandos said the company was “highly confident” it would receive regulatory clearance and emphasized that work is moving ahead “full speed.” He added that merging Warner Bros’ extensive catalog with Netflix’s originals, including hits like Stranger Things, would “give audiences more of what they love and help define the next century of storytelling.”
"Warner Bros have defined the last century of entertainment, and together we can define the next one," Sarandos added.
Regarding the future of HBO, Netflix co-chief executive Greg Peters said the brand remains “important for consumers,” but noted that it is “quite early to get into the specifics of how we're going to tailor this offering for consumers.”
The acquisition is expected to deliver $2-3 billion in savings by removing duplicated roles in technology and support services. Warner Bros films will still premiere in cinemas, and the studio’s television division will retain the ability to create content for third-party networks.
Netflix will continue to produce original programming exclusively for its platform.
Sarandos called the acquisition a “big day” and acknowledged that while the move may surprise some shareholders, it represents a “rare opportunity” to secure Netflix’s growth for decades. Warner Bros president and CEO David Zaslav said combining the two companies would unite “two of the greatest storytelling companies in the world” and allow audiences “to enjoy the world's most resonant stories for generations to come.”
The deal values Warner Bros at $27.75 per share, with a total enterprise value—including debts and stock—of around $82.7 billion. Both companies’ boards have given unanimous approval.
The transaction will be completed after Warner Bros separates its streaming and studio divisions from its global networks, which include CNN, sports channels, and European free-to-air networks.
Industry analysts say the acquisition signals Netflix’s ambition to dominate global streaming. Paolo Pescatore of PP Foresight described it as “a huge statement of intent” but warned that merging such large operations could be challenging.
Tom Harrington from Enders Analysis said the merger would “reorient Hollywood” if approved, potentially cutting TV and film output and raising subscription costs for consumers.
Danni Hewson of AJ Bell noted that Netflix had reassured Hollywood by promising to continue releasing Warner Bros films in cinemas and said the company could realize “considerable cost savings” once regulatory approvals are secured. However, she added that how much of these savings will benefit subscribers or whether Netflix will wield too much pricing power will be closely watched.
