Netflix agrees to acquire Warner Bros. Discovery for $72B, reshaping Hollywood’s power structure as regulators prepare for intense antitrust scrutiny.
Netflix to Acquire Warner Bros. Discovery in Landmark $72B Deal
Historic Shift in Hollywood Power
Netflix has announced a sweeping agreement to acquire Warner Bros. Discovery for $72 billion USD, marking one of the largest entertainment mergers in modern media history. The decision, revealed Friday following a heated multi-week bidding contest, positions Netflix to assume control of iconic franchises including Game of Thrones, DC Comics, and Harry Potter.
Competing Bidders and Final Offer
The deal emerged after Warner Bros. Discovery entertained multiple offers, including bids from Paramount Skydance and Comcast. Netflix secured the lead with a nearly $28-per-share offer—surpassing Paramount’s estimated $24 bid. Shareholders are set to receive $23.25 in cash and $4.50 in Netflix stock per share.
Industry Impact and Market Reaction
With Warner Bros. Discovery bringing nearly 130 million streaming subscribers, the acquisition significantly reshapes the competitive landscape. Analysts say the deal advances Netflix’s strategy to secure long-term rights, reduce reliance on external studios, and expand its presence in gaming and theatrical production.
Cinema United, a global theatre association, called the merger an “unprecedented threat” to movie exhibitors, while media analyst Paolo Pescatore warned the transaction would be heavily scrutinized under current regulatory climates.
Regulatory Challenges Ahead
The acquisition faces a difficult approval process in both the United States and Europe. Regulators are expected to examine the implications of combining the world’s largest streaming platform with one of Hollywood’s oldest studios and the operator of HBO Max.
To ease concerns, Netflix has reportedly pledged to maintain theatrical releases for Warner Bros. films and has argued that bundling Netflix with HBO Max could lower streaming costs for consumers.
Background and Corporate Structure
Warner Bros. Discovery was itself formed only three years ago after AT&T spun off WarnerMedia in a $43-billion merger with Discovery Communications. The current deal is expected to finalize after Warner Bros. Discovery completes the planned spinoff of its global networks division, Discovery Global, by the third quarter of 2026.
The split would create a dedicated streaming and studios company—including HBO, HBO Max, Warner Bros. Television, Warner Bros. Motion Picture Group, and DC Studios—while CNN, Discovery, TNT Sports, and Discovery+ would remain part of a separate cable-focused entity.
Reactions from Creators and Political Pressure
A group of prominent Hollywood producers reportedly urged U.S. lawmakers to oppose the sale, citing fears of retaliation from Netflix due to its market influence. Their anonymously signed letter, reported by Variety, signals growing unease within the creative community.
Meanwhile, Paramount Skydance questioned the fairness of the sale process earlier this week, pointing to Netflix’s perceived advantages.
Impact on Canadian Viewers Still Uncertain
How the acquisition will affect Canadian audiences remains unclear. Warner Bros. Discovery currently licenses HBO content to Bell Media’s Crave under a multi-year exclusive agreement renewed in 2024. Any changes will depend on regulatory outcomes and future licensing negotiations.
