Web Desk — December 6, 2025
Hollywood: In a seismic shift for the entertainment industry, Netflix has clinched a landmark agreement to acquire Warner Bros Discovery’s television, film studios, and streaming division for $72 billion in equity value, marking one of the largest media mergers in history and potentially redrawing the battle lines in the streaming wars.
The deal, announced Friday, values Warner Bros Discovery (WBD) at $27.75 per share, comprising $23.25 in cash and $4.50 in Netflix stock per share, with an enterprise value of approximately $82.7 billion including over $10 billion in assumed debt. Netflix’s aggressive bid emerged victorious after a fierce weeks-long auction process that began in October when WBD formally launched the sale of its assets to address mounting financial pressures and streaming competition.
Initially positioned as a mere observer to gather due diligence, Netflix pivoted to a full acquisition pursuit by late October, zeroing in on Warner’s film studios, theatrical distribution network, and HBO Max streaming service as critical engines for content expansion. Industry experts highlight that legacy films and TV shows from Warner’s vault—accounting for a substantial share of viewing hours on platforms—will supercharge Netflix’s library, blending timeless hits like “Casablanca” and “Friends” with originals such as “Stranger Things.”
The transaction faced stiff competition from heavyweights like Paramount (via Skydance) and Comcast, with Paramount’s higher cash offers undermined by financing uncertainties. WBD’s board deemed Netflix’s proposal the most robust, viable, and value-accretive, bolstered by the streamer’s commitment to a nearly $6 billion breakup fee to underscore its seriousness amid potential regulatory hurdles. The decisive bid was submitted Thursday night, paving the way for swift approval.
Under the terms, WBD will proceed with its planned 2026 spinoff of the cable TV arm—encompassing CNN, TNT, and Discovery networks—creating a standalone entity while Netflix absorbs the studio and streaming halves post-separation, expected by Q3 2026. This structure addresses antitrust concerns, though the merger will face intense scrutiny from US and global regulators over market dominance, with Netflix poised to control premium franchises like Batman, Harry Potter, Game of Thrones, and DC Studios.
Netflix Co-CEO Ted Sarandos hailed the move as a “transformative union” that ensures “resonant stories endure for generations,” while WBD CEO David Zaslav emphasized the strategic fit for global reach. Shares of Netflix dipped nearly 3% in early trading Friday to $100.24, reflecting investor digestion of the $424 billion giant’s bold pivot, while WBD closed at $24.50 Thursday.
Analysts predict the acquisition will consolidate Netflix’s subscriber base—already the world’s largest at over 300 million—while challenging theatrical models, as groups of independent producers voice fears over reduced cinema output. Echoing Amazon’s 2022 MGM buy, this deal signals tech’s deepening grip on Hollywood, potentially spurring further mergers among legacy players to survive the streaming era.
