Netflix acquires Warner Bros. Discovery’s Film Studios and HBO Max assets in $72 billion deal

In a stunning, culture-shifting move, Netflix has officially agreed to acquire the film and television studios and streaming division of Warner Bros. Discovery (WBD) in a massive cash-and-stock deal valued at $72 billion (with a total enterprise value of approximately $82.7 billion).

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The agreement, announced Friday, follows a weeks-long bidding war and hands control of one of Hollywood's oldest and most prestigious assets, the studio behind DC Comics, Game of Thrones, and the Harry Potter franchise, to the streaming pioneer that has spent its history focused on organic growth.

A strategic triple win

The acquisition is widely seen as a transformative step for Netflix, instantly addressing its only structural weakness: a deep, century-old library of intellectual property. The deal is expected to close in the third quarter of 2026, after WBD spins off its cable network unit (including CNN and TNT) into a separate entity, Discovery Global.

Content library power: Netflix gains ownership of iconic franchises like The Sopranos, The Big Bang Theory, Friends, Casablanca, and all of HBO Max’s premium content, merging them with existing Netflix hits like Stranger Things and Wednesday. Analysts say library titles account for up to 80% of streaming viewing, making this IP invaluable.

• Eliminating a rival: The deal removes one of Netflix’s biggest global streaming rivals, HBO Max, and gives the combined entity control of a significant percentage of the U.S. streaming market.

• Production muscle: Netflix gains control of Warner Bros.'s powerful theatrical distribution and production infrastructure, accelerating its content creation capabilities for decades to come.

Co-CEO Ted Sarandos stated, "By combining Warner Bros.' incredible library... with our culture-defining titles, we'll be able to do that even better. Together, we can give audiences more of what they love and help define the next century of storytelling."

The antitrust nightmare

The path to completion is expected to be difficult, with the deal likely facing intense antitrust scrutiny in both the U.S. and Europe. Critics and lawmakers have already voiced fierce opposition:

Political backlash: Democratic Senator Elizabeth Warren called the merger an "anti-monopoly nightmare," warning it would "force Americans into higher subscription prices and fewer choices over what and how they watch."

• Industry opposition: Hollywood guilds, including the Directors Guild of America and the Writers Guild of America, have publicly opposed the merger, warning it could eliminate jobs and reduce content diversity.

• Theatrical concerns: Global cinema associations have warned the deal poses an "unprecedented threat" to movie theaters, fearing Netflix will accelerate the removal of theatrical exclusivity windows.

To signal its confidence and hedge against regulatory risk, Netflix included an unusually large $5.8 billion breakup fee, one of the largest in M&A history, to be paid to WBD should the deal fall through due to antitrust concerns.

The transaction is valued at $27.75 per WBD share and is expected to generate an estimated $2 billion to $3 billion in annual cost savings by the third year after closing.