In a landmark move set to redefine the global media landscape, streaming pioneer Netflix has announced a colossal agreement to purchase the television and film studios, along with the streaming division, of Warner Bros Discovery for a staggering sum of $72 billion. The deal, revealed in a joint statement on December 5, 2025, would place iconic franchises like Game of Thrones, DC Comics, and Harry Potter under the Netflix banner.
A Deal Forged in a Bidding War
The agreement concludes a fierce weeks-long bidding war. Netflix emerged victorious with an offer of nearly $28 per share, surpassing a rival bid of around $24 per share from Paramount Skydance for the entirety of Warner Bros Discovery. Prior to the announcement, Warner Bros Discovery shares closed at $24.5 on Thursday, valuing the company at approximately $61 billion. The final transaction values Warner at $27.75 per share, translating to an equity value of about $72 billion and an enterprise value of $82.7 billion including debt.
Under the terms, each Warner Bros Discovery shareholder will receive $23.25 in cash and roughly $4.50 in Netflix stock per share. The acquisition is expected to finalize after Warner spins off its global networks unit, Discovery Global, into a separate listed company, a process targeted for completion in the third quarter of 2026.
Reshaping Hollywood and Antitrust Hurdles
This acquisition dramatically shifts the power dynamics in Hollywood. Netflix, which built its dominance primarily through original content rather than major acquisitions, will now command an unparalleled content library. Netflix co-CEO Ted Sarandos stated the union would allow the companies to "give audiences more of what they love and help define the next century of storytelling." The company projects annual cost savings of $2 billion to $3 billion by the third year post-deal.
However, the path to completion is expected to be rocky. The deal will likely face intense antitrust scrutiny from regulators in both Europe and the United States. The primary concern is that it would grant the world's largest streaming service ownership of a direct rival, HBO Max, which boasts nearly 130 million subscribers. To address these concerns, Netflix has reportedly argued that combining services could lower costs for consumers through bundled offerings. Additionally, media reports suggest Netflix has committed to continuing theatrical releases for Warner Bros films to alleviate fears about the reduction of major film studios.
Market Reactions and Rival Discontent
The announcement triggered immediate reactions in the market and among competitors. Netflix shares dipped nearly 3% in premarket trading following the news. Paramount, led by David Ellison, which initiated the bidding war, had previously questioned the sale process, alleging favorable treatment towards Netflix. Paramount has close ties with the Trump administration, adding a potential political dimension to the regulatory review.
Analysts believe Netflix's drive for this mega-deal stems from a desire to secure long-term rights to premium content, reducing reliance on external studios as it expands into new growth avenues like gaming. This strategic purchase aims to solidify Netflix's position against formidable competitors like Walt Disney and the Ellison family-backed Paramount in the ever-evolving streaming wars.
