If approved by federal regulators, the deal would merge Netflix’s global streaming empire with Warner Bros.’ 102-year legacy — reshaping Hollywood, boosting Netflix’s content dominance, and intensifying antitrust scrutiny.
In a historic and explosive shake-up for Hollywood, Warner Bros. Discovery announced Friday that it has agreed to sell its studios and streaming operations to Netflix in a blockbuster deal valued at $82.7 billion — instantly positioning Netflix as the most dominant content powerhouse ever assembled in the digital age.
If approved by federal regulators, the merger would unite the world’s largest streaming platform — with more than 300 million global subscribers — with a century-old studio catalog that includes HBO, HBO Max, DC Comics, Harry Potter, Friends, Casablanca, Citizen Kane, and thousands of iconic film and TV properties.
“Our mission has always been to entertain the world,” said Netflix co-CEO Ted Sarandos, calling the merger an unprecedented blending of legacy Hollywood and global digital reach.
Warner Bros. CEO David Zaslav echoed that sentiment, saying the combined company would “define the next century of storytelling.”
THE DEAL: CASH, STOCK & A STAGGERING PRICE PREMIUM
According to the companies, Netflix will acquire Warner Bros. Discovery with:
- A cash-and-stock offer valued at $82.7 billion
- An equity valuation of $72 billion
- A per-share valuation of $27.75
- A bridge loan of $59 billion secured through major banks
Warner Bros. Discovery’s market cap before the announcement was $60 billion, making Netflix’s offer far higher than the studio’s public valuation — a shock even inside the industry.
The deal does not include Warner’s cable networks such as CNN, TNT, and TBS.
CONTENT EMPIRE: WHAT NETFLIX GETS
If regulators approve the acquisition, Netflix gains control of:
🎬 Warner Bros. Studios
- Harry Potter
- DC Universe (Batman, Superman, Wonder Woman)
- The Matrix
- Dune
- Barbie, Lord of the Rings (shared rights)
📺 Television & Streaming
- HBO & HBO Max
- Game of Thrones Universe
- Friends, The Big Bang Theory
- Prestige dramas & film catalog dating back to 1923
Combined with Netflix originals like Stranger Things, Squid Game, and the upcoming KPop Demon Hunters, the merged library would be the largest entertainment catalog in history.
WHY WARNER DISCOVERY SOLD
Warner Bros. Discovery has been struggling under:
- Massive debt loads
- Slowing growth in streaming
- Costly misfires in mergers and restructuring
The company officially put itself up for sale in the fall.
Paramount Skydance and Comcast also submitted bids, with many expecting Paramount — backed by billionaire Larry Ellison — to win.
But Netflix outbid everyone.
ANTITRUST BATTLE LOOMS
The merger faces immediate and intense political and antitrust scrutiny.
Last month, three senators — Elizabeth Warren, Bernie Sanders, and Richard Blumenthal — warned DOJ that any Warner Bros. merger could be tainted by “political favoritism and corruption.”
House Republican Darrell Issa said the Netflix–Warner merger could give one company over 30% of the streaming market, calling it a historically dangerous threshold.
An anonymous coalition of “concerned film producers” also demanded Congress block the merger, calling for the “highest level of antitrust scrutiny.”
California’s Attorney General said regulators are committed to fighting media consolidation that harms consumers.
