Netflix has agreed to buy the film and TV studios of Warner Bros. Discovery along with its streaming services in a deal valued at $82.7 billion, according to CNN. The agreement includes about $72 billion in equity value and positions Netflix to become one of the most powerful entertainment companies in the industry.
The companies said Warner Bros. Discovery shareholders will receive $27.75 per share in a mix of cash and Netflix stock. The deal depends on the planned separation of Warner Bros. Discovery’s cable and linear networks into a standalone company called Discovery Global. The spin-off is scheduled to be completed by the third quarter of 2026, according to a joint statement.
Why Netflix Wants the Studio
Warner Bros. Discovery’s assets include a historic film studio, a major television library, and key streaming operations. Analysts told Variety that the acquisition would give Netflix one of the deepest collections of intellectual property in Hollywood. The Warner Bros. catalog includes blockbuster franchises and decades of high-value titles that repeatedly draw global audiences.
According to filings and company statements reviewed by The Washington Post, Netflix will gain control of HBO, Max, Warner Bros.’ film studio, and its television production units as part of the agreement.
Owning those properties would strengthen Netflix’s position at a moment when streaming services face slower growth and higher production costs. The company has spent years licensing or competing for Warner Bros. titles. Bringing the studio in-house would give Netflix long-term control of content that remains popular worldwide.
Industry analysts who spoke with The Hollywood Reporter said Netflix could also use the deal to expand its theatrical footprint. Warner Bros. Discovery operates one of the longest-running studio distribution pipelines. Netflix has been increasing the number of films it sends to theaters and could fold the Warner Bros. system into that strategy.
The deal leaves out Warner Bros. Discovery’s cable networks, including CNN, TBS, and Discovery Channel, which will move into the Discovery Global company.
Competitors Raise Concerns
The negotiations leading up to the agreement drew criticism from rival bidders. Paramount Global told CNBC, in comments reported by Reuters, that Warner Bros. Discovery favored Netflix in the negotiations. Paramount’s attorneys asked the company to create an independent committee to oversee the sale and argued that the bidding process lacked transparency.
Comcast also participated in earlier rounds, according to Deadline, which reported that studios and distributors viewed the second-round offers as highly competitive. Each bidder sought access to Warner Bros. Discovery’s strongest entertainment assets while leaving behind cable networks and other legacy businesses.
The possibility of a Netflix-Warner Bros. combination has attracted scrutiny in Washington. Producer groups and lawmakers cited by Variety and Deadline said a merger of this scale could reduce competition in the industry. Any agreement would require regulatory clearance and could face delays. Paramount continued to criticize the sale process even after the agreement was announced, according to reporting from CNBC and Reuters.
What Happens Next
The companies expect regulatory review to begin immediately. Analysts told The Washington Post that the deal will undergo scrutiny in Washington, where lawmakers and producer groups have already expressed concern about market concentration. Once the separation of Discovery Global is completed and if regulators approve the deal, Netflix will begin integrating Warner Bros.’ studio operations and streaming platforms into its global business.
With one of Hollywood’s most storied studios set to join its portfolio, Netflix is no longer just shaping the future of streaming. It is preparing to redefine the center of Hollywood itself.
