Netflix to acquire Warner Bros.’ studios and HBO Max in a landmark $72 billion deal

Netflix is set to acquire Warner Bros. Discovery’s studio and streaming assets in a deal valued at $72 billion, plus debt, bringing one of Hollywood’s most historic studios under the world’s largest streaming platform. The agreement, which is still subject to regulatory approval, gives Netflix control of Warner Bros.’ film and TV studios, as well as HBO and HBO Max.

The deal will officially close after Warner Bros. Discovery completes its plan to separate its Global Networks division into a new publicly traded company. Under the restructure expected in 2026, Netflix will take over the studios and streaming platforms, while the new Discovery Global entity will oversee CNN and the company’s cable networks.

Once completed, the merger will bring together Warner Bros.’ legendary catalog and franchise hits like “Harry Potter,” “DC,” “The Sopranos,” “Game of Thrones,” “Friends,” “The Big Bang Theory,” and “Casablanca,” alongside Netflix originals such as “Stranger Things,” “Wednesday,” “Bridgerton,” and “Squid Game.”

Netflix said it plans to maintain Warner Bros.’ current operations, including theatrical film releases. The move is especially significant because Netflix has rarely pursued major acquisitions, focusing instead on creating its own original content. As of the last quarter, 63% of Netflix’s content library consisted of originals, with no single title making up more than 1% of viewing.

Analysts say this acquisition reflects the shifting streaming landscape. With platforms like HBO Max, Paramount+, and Peacock struggling for scale, Netflix’s move prevents a competitor from gaining control of Warner Bros.’ valuable intellectual property and strengthens its position as the industry leader.

Netflix co-CEO Ted Sarandos said the combined platforms will “give audiences more of what they love and help define the next century of storytelling.”

In recent months, Paramount, Netflix, and Comcast all submitted bids for the Warner Bros. Discovery assets. Paramount even challenged the fairness of the bidding process, signaling how important the acquisition was to its future. Analysts noted that while all the bids could pass antitrust review, Netflix and Comcast would likely face more scrutiny due to their size.

Despite potential regulatory hurdles, Netflix had the strongest position financially. The final agreement includes both cash and stock, with Warner Bros. Discovery shareholders set to receive $23.25 in cash and $4.50 in Netflix shares.