In the largest media consolidation deal of the decade, streaming behemoth Netflix announced Friday it has struck a definitive agreement to acquire the storied film and television studios of Warner Bros. Discovery (WBD), including the prestigious HBO and its streaming platform HBO Max, for an equity value of $72 billion.
The blockbuster, cash-and-stock transaction, which values the total enterprise at an estimated $82.7 billion including debt, catapults Netflix into an unprecedented position of dominance, effectively merging Silicon Valley’s streaming king with a century-old treasure trove of cinematic and television history.
A Library United: Classics and Franchises
The acquisition is a strategic gold rush for Netflix, instantly securing a content library that rivals any in history and giving it full control over iconic, world-renowned franchises and properties that were previously under the WBD umbrella.
- The Crown Jewels: Netflix gains ownership of franchises including Harry Potter, the DC Comics universe, and flagship television hits like Game of Thrones, The Sopranos, and Friends.
- A Content Juggernaut: The merger unites Netflix’s massive global production machine and hits like Stranger Things and Squid Game with Warner Bros.’ vast content-making capacity, drastically reducing Netflix’s reliance on licensing external content.
“This is more than a merger; it’s the dawn of a new entertainment era,” Netflix Co-CEO Ted Sarandos said in a joint statement. “By combining Warner Bros.’ incredible library… with our culture-defining titles, we’re uniting Silicon Valley innovation with Hollywood’s soul to deliver joy at scale.”
WBD President and CEO David Zaslav, whose tenure has been marked by aggressive cost-cutting, echoed the sentiment, stating the deal ensures Warner Bros.’ “magic endures for generations” through Netflix’s global reach.
Regulatory Showdown Looms
The path to closing the deal, expected in late 2026 or early 2027, is riddled with regulatory hurdles and industry backlash. The combined entity will command over 21% of U.S. streaming viewership and unites the world’s two largest premium streaming services, leading to immediate antitrust concerns.
- Antitrust Scrutiny: Both the U.S. and European competition authorities are expected to scrutinize the deal intensely, particularly over the elimination of a major rival, HBO Max, and the potential for monopolistic control over streaming prices. Netflix signaled its expectation of fierce scrutiny by agreeing to an unusually large $5 billion breakup fee if regulators block the transaction.
- Hollywood Opposition: The deal has also faced fierce resistance from within the industry. Guilds, including the Writers Guild of America and Directors Guild of America, publicly opposed the merger, warning it would “eliminate jobs, push down wages, and reduce the diversity of content.”
- The Theatrical Threat: Cinema groups have voiced “grave concerns,” fearing Netflix, whose model traditionally bypasses movie theaters, will undermine the theatrical release window for major Warner Bros. films. Netflix, however, pledged to honor existing contractual theatrical commitments.
The acquisition comes after a fierce bidding war that saw rival offers from Comcast and Paramount. The deal is contingent upon WBD completing its previously announced plan to spin off its remaining cable networks—including CNN and TNT Sports—into a new, separate publicly-traded company called “Discovery Global.”
As the dust settles on this historic announcement, the question remains whether regulators will allow one company to control such an overwhelming slice of global entertainment.