Netflix to Buy Warner Bros Discovery in Landmark Deal
Netflix has agreed to acquire Warner Bros Discovery (WBD) in an $82.7bn deal that is set to transform the global entertainment landscape. The purchase grants Netflix control of Warner Bros, the legendary studio behind iconic franchises such as Harry Potter, Batman, and Superman, as well as HBO, home to critically acclaimed series including Game of Thrones, Succession, and The White Lotus.
The agreement also gives Netflix access to a vast television library, including hit sitcoms Friends and The Big Bang Theory. Notably, Friends had been scheduled to leave Netflix at the end of the year.
Netflix co-CEO Ted Sarandos called the acquisition a natural extension of the company’s mission “to entertain the world,” saying the combined resources would help shape “the next century of storytelling.”
The deal values WBD at $72bn excluding debt and is expected to close after the company spins off its cable networks—CNN, TBS, and TNT—sometime in the third quarter of next year. Netflix has agreed to pay a $5bn breakup fee if the transaction fails to secure regulatory approval.
Analysts warn that the merger could trigger antitrust concerns, as it would merge two of the largest streaming platforms in the U.S. Alicia Reese of Wedbush noted that the regulatory process could be “lengthy and difficult” without clear assurances from Warner Bros.
WBD’s theatrical slate is already locked in through 2029, meaning Netflix must honor those commitments. Despite industry concerns, WBD CEO David Zaslav said the merger ensures that Warner Bros stories will remain widely accessible “for generations to come.”
Warner Bros placed itself on the market in October amid interest from Paramount Skydance and Comcast. Paramount had been perceived as a frontrunner and accused WBD of favoring Netflix in what it called a “tainted” auction process.
The potential sale has also drawn broader political and industry reactions. Director James Cameron warned that a Netflix takeover could result in a “catastrophic loss of long-term value” for Hollywood. Reports also suggest former U.S. President Donald Trump would prefer Paramount’s bid, given the appeal of the Ellison family controlling CNN and CBS.
All companies involved have declined to comment as the industry awaits the next stage of regulatory review.
