Netflix’s agreement to acquire Warner Bros Discovery’s studios and streaming division for $72 billion marks one of the largest shake-ups in modern entertainment. After years of building its identity as a disruptor that challenged traditional viewing habits, Netflix is now stepping directly into the role of a full-scale studio owner, gaining control of a century-old catalog and several of the world’s best-known franchises.
The deal concludes a lengthy bidding contest involving Paramount Skydance and Comcast, both of which had pursued Warner Bros Discovery with varying approaches. Netflix ultimately prevailed by offering $27.75 per share in a cash and stock package, a valuation far above Warner Bros Discovery’s trading price before rumors of a sale emerged. The agreement still faces regulatory approval in the United States and Europe, where concerns about market concentration in streaming have already begun to surface.
Netflix co-CEO Ted Sarandos acknowledged the surprise among investors, noting that the company has long been characterized as a creator rather than an acquirer. Yet he called the move a rare chance to strengthen Netflix’s reach, pairing its own hit series such as Stranger Things and Bridgerton with Warner’s deep library, including Harry Potter, Game of Thrones, and DC’s roster of superheroes, including Batman and Superman. Sarandos emphasized that combining these catalogs could help shape global storytelling for years to come.
Regulators, however, may view the merger differently. Critics in Hollywood, Congress and the global cinema community warn that placing HBO Max and Warner’s vast output under the control of the largest streaming service could reduce competition, harm workers and narrow the variety of entertainment available to audiences. Cinema United, a trade group for theaters, described the merger as a threat to exhibitors worldwide, while labor unions and former executives raised alarms about potential job losses and fewer production opportunities.
Netflix has tried to address these concerns by pledging continued investment in U.S. production, commitments to theatrical releases for Warner Bros films and long-term spending on new projects. The company has also signaled openness to bundling HBO Max content with its own platform, arguing that such combinations could lower costs for viewers. Co-CEO Greg Peters said it was too early to outline the exact product strategy but stressed the enduring value of the HBO brand.
Financially, Netflix expects the merger to yield $2 billion to $3 billion in annual cost savings by the third year, primarily through reducing overlap in technology and support functions. The company’s stock has climbed steadily in recent years, though investor enthusiasm has cooled as its rapid expansion shows signs of slowing. The acquisition offers Netflix access to more exclusive rights and provides a boost to its push into gaming, an area where Warner Bros has delivered major successes, including Hogwarts Legacy.
Warner Bros Discovery will first separate its global networks into a new company, Discovery Global, before the transaction closes, likely in late 2026. Once complete, Netflix will operate one of the broadest entertainment portfolios in the world, spanning streaming, film production, gaming and theatrical releases, while navigating what is certain to be an intense regulatory review.
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