Netflix announces $72 billion acquisition of Warner Bros. in blockbuster end-of-year deal
Netflix confirms a $72 billion agreement to acquire major assets of Warner Bros. Discovery, including Warner Bros. Studios and HBO Max. Regulators and unions express strong antitrust concerns.
Netflix announced on Friday that it has reached an agreement to acquire key assets of Warner Bros. Discovery, marking the rapid conclusion of an intensely contested bidding process. Paramount, Skydance, and Comcast had all previously attempted to acquire Warner, but Netflix ultimately secured the deal.
The transaction consists of cash and stock valued at $27.75 per share, with the deal estimated at $72 billion, based on Warner’s approximate valuation of $82.7 billion.
Under the agreement, Netflix will acquire Warner Bros. film studios and the HBO Max streaming service. Warner will continue with its previously announced plan to spin off Discovery Global, which includes its cable television portfolio such as TNT and CNN.
This blockbuster deal brings together the world’s largest streaming service with one of Hollywood’s most historic film studios — home to iconic titles such as The Wizard of Oz, the Harry Potter franchise, and the DC Universe, as well as HBO Max hits like The Sopranos and Game of Thrones.
The acquisition is expected to close after the separation of Warner’s TV network business, anticipated in Q3 of 2026. Both companies estimate that the full transaction will complete within 12 to 18 months.
Once finalised, all Warner Bros. Discovery shareholders will receive $23.25 in cash plus $4.50 worth of Netflix common stock per Warner share.
The boards of both Netflix and Warner Bros. Discovery have unanimously approved the deal, but it remains subject to shareholder approval and regulatory review.
Netflix has agreed to pay a $5.8 billion termination fee if the deal fails to win approval, according to filings with the U.S. Securities and Exchange Commission (SEC). Warner Bros. Discovery would owe $2.8 billion if it cancels the deal in favour of another buyer.
Strong backlash from unions and industry groups
The Writers Guild of America East and West issued a joint statement:
“This merger must be blocked. The world’s largest streaming company swallowing one of its biggest competitors is what antitrust laws were designed to prevent.”
The union, representing writers across film, TV, news, podcasts, and digital media, warned of job losses, wage cuts, higher prices for consumers, and deteriorating working conditions. Netflix, however, said it expects to realise $2-3 billion in annual cost savings by the third year after closing.
Cinema United, representing 30,000 US cinemas and 26,000 theatres worldwide, warned the merger could reduce domestic box-office revenue by 25% per year.
Netflix, which releases some films theatrically before streaming them, said it would continue to screen Warner Bros. films in cinemas, support Hollywood’s creative workforce, expand viewing options for subscribers, increase US-based production, and create more opportunities for creators.
The Hollywood Teamsters, representing drivers, casting professionals, mechanics and other entertainment workers, also opposed the deal, urging opposition across all levels of government, and calling on antitrust regulators to reject the merger.
The actors’ union SAG-AFTRA said the deal “raises many serious questions,” and would comment further after assessing its impact on members.
