Netflix to Acquire Warner Bros Discovery’s Film and Streaming Units in Landmark $72bn Deal

Netflix has reached a $72bn (£54bn) agreement to purchase the film and streaming divisions of Warner Bros Discovery, marking one of the most consequential mergers in modern Hollywood.

The streaming giant outbid Comcast and Paramount’s Skydance for control of Warner Bros’ entertainment assets, which include blockbuster franchises such as Harry Potter, Game of Thrones and the HBO Max streaming platform. The takeover will undergo extensive antitrust scrutiny before it can proceed.

The move positions Netflix to reshape the global entertainment landscape, drawing immediate reactions across the industry – from enthusiastic statements by executives to sharp criticism from labour unions.

A New Media Powerhouse

Netflix co-chief executive Ted Sarandos said the company was “highly confident” regulators would approve the acquisition. He described the combination of Warner Bros’ century-old catalogue with Netflix’s global platform as a chance to “define the next century of storytelling.”

“Warner Bros shaped the last hundred years of entertainment, and together we can shape the next,” Sarandos said, calling the deal a “rare opportunity” to position Netflix for the long term.

Co-CEO Greg Peters said the HBO brand would remain important but added that it was “too early” to outline how the new offerings would be structured for viewers.

Netflix expects to save between $2bn and $3bn by removing duplicated roles across technology and administrative departments.

Under the agreement, Warner Bros films will continue to debut in cinemas, and its TV studios will still be allowed to license productions to outside buyers. Netflix, however, will maintain its current approach of creating content exclusively for its own platform.

Warner Bros Discovery chief executive David Zaslav hailed the merger as a union of “two of the world’s greatest storytelling companies,” saying the partnership will allow their content to reach global audiences “for generations to come.”

Deal Structure and Corporate Reorganisation

The cash-and-stock transaction values Warner Bros shares at $27.75 each and places the studio’s total enterprise value – debt included – at roughly $82.7bn. Both companies’ boards have unanimously approved the agreement.

Before the takeover closes, Warner Bros will proceed with a planned split of its operations. Its streaming and studio arm – the segment being acquired – will separate from its worldwide networks division, which will be rebranded as Discovery Global and retain channels including CNN, Discovery and TNT Sports in the US and Europe. TNT Sports International will remain with the unit Netflix is acquiring.

Unions and Industry Groups Raise Alarm

Reaction from Hollywood unions was swift. The Writers Guild of America’s East and West branches issued a joint statement urging regulators to block the merger, warning it would “eliminate jobs, suppress wages, reduce working standards and limit the diversity of content available to audiences.”

Cinema United, representing theatres across the US, said the combined company could pose “an unprecedented threat” to cinemas, from major chains to single-screen venues.

A Reshaped Hollywood

Industry analysts say the deal signals a seismic shift in the streaming landscape. Paolo Pescatore of PP Foresight called it “a huge statement of intent” by Netflix as it strengthens its position as the dominant global streamer. But he cautioned that integrating a company the size of Warner Bros would be a “major challenge.”

Paramount previously attempted a full takeover of Warner Bros Discovery, including its cable networks, but its offer was rejected.

Analysts warn that if regulators approve the sale, the merger could lead to significant reductions in film and TV production and potentially higher subscription costs for consumers.

Tom Harrington of Enders Analysis said the takeover would “reorient Hollywood,” with ripple effects across content supply, industry jobs and cinema releases.

Danni Hewson, head of financial analysis at AJ Bell, noted that Netflix’s commitment to releasing Warner Bros films theatrically may ease some industry concerns but said the deal will face heavy scrutiny over how much pricing power Netflix could gain.

Regulatory reviews in the US and internationally are expected to determine the timeline for the deal’s completion.