Netflix has finalized an agreement to acquire Warner Bros. Discovery’s film and television studios, along with the HBO Max streaming service, in a landmark deal that reshapes the media landscape. The acquisition is valued at $72 billion in equity, or $82.7 billion including debt, merging Netflix’s massive subscriber base with Warner Bros.’ extensive content library.
Under the agreement, Warner Bros. Discovery shareholders will receive $23.25 in cash plus 4.501 shares of Netflix stock for each share they hold, valuing the company at $27.75 per share. Both companies’ boards approved the deal unanimously. Before the transaction can be completed—expected within 12 to 18 months—Warner Bros. Discovery must first spin off its Global Networks division, which includes CNN and TNT, into a separate public company by the third quarter of 2026.
Netflix outbid Paramount Skydance and Comcast, offering a combination of cash and stock and agreeing to a $5 billion breakup fee if regulators reject the merger. This offer positioned Netflix as the preferred buyer, leading to exclusive negotiations. Once completed, the acquisition will bring major Warner Bros. franchises—such as Harry Potter, DC Comics, and Game of Thrones—into Netflix’s ecosystem. Netflix will gain access to HBO Max’s 100 million users, adding to its more than 300 million global subscribers, and significantly expanding its content catalog. The company has also pledged to continue theatrical releases for Warner Bros. films, marking a shift from its mostly streaming-focused strategy.
Netflix stated that the merger will “define the next century of storytelling,” while co-CEO Ted Sarandos described it as a rare opportunity to boost production and invest further in original content. Warner Bros. Discovery CEO David Zaslav said the partnership will preserve the studio’s legacy and ensure its iconic stories endure. This marks Netflix’s largest acquisition ever, a major move for a company known for organic growth rather than major buyouts. The combined platform would significantly boost Netflix’s U.S. streaming market share, currently around 20 percent, though analysts warn of challenges related to media consolidation.
Industry groups are expressing concern. The Directors Guild of America plans talks with Netflix over job impacts, theater groups fear the deal could sideline cinemas, and some Hollywood executives have urged Congress to intervene, citing risks to the industry’s structure. Paramount has criticized the sale process, arguing it unfairly favored Netflix. The deal follows years of financial strain for Warner Bros. Discovery, burdened by heavy debt and streaming losses since its 2022 merger. For Netflix, the acquisition signals a strategic push into traditional Hollywood assets as subscriber growth begins to level off.
Source: https://businessday.ng/
