Netflix has agreed to acquire Warner Bros. Discovery’s studio and streaming business in a landmark $72 billion deal, uniting two of Hollywood’s most influential entertainment companies. The agreement, announced early Friday, will give Netflix control of Warner Bros.’ film and television assets, including HBO Max and DC Studios, alongside its own dominant streaming platform and original hits such as Stranger Things, Kpop Demon Hunters and Squid Game.
The transaction, structured as a cash-and-stock deal valued at $27.75 per Warner share, places Warner’s enterprise value at approximately $82.7 billion. The deal is expected to close in late 2026, following Warner’s planned spin-off of its Discovery Global cable operations into a separate publicly traded company.
Netflix co-CEO Ted Sarandos said the merger will combine Warner’s legendary catalog — from classics like Casablanca and Citizen Kane to franchises such as Harry Potter and Friends — with Netflix’s culture-defining originals. “Together, we can give audiences more of what they love and help define the next century of storytelling,” Sarandos said.
Sarandos’ co-CEO Greg Peters highlighted the deal’s potential to broaden Netflix’s global reach and “accelerate our business for decades to come,” while also providing members with more choices — “attracting more fans to our best-in-class streaming service, strengthening the entire entertainment industry and creating more value for shareholders.”
Warner Bros. Discovery CEO David Zaslav called the partnership a union of “two of the greatest storytelling companies in the world,” adding, “By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come.”
Warner Bros. shares climbed nearly 3% in premarket trading, while Netflix and Paramount each slipped more than 2%.
Despite the optimism from executives, the acquisition has sparked industry concerns. Cinema United warned the deal poses “an unprecedented threat to the global exhibition business,” while the Directors Guild flagged “significant concerns” about its impact on creative and competitive dynamics. If it passes regulatory muster, the merger would transform the entertainment industry, creating a powerhouse with unparalleled production capabilities, a vast library of intellectual property, and dominant streaming reach — paving the way for a new era of media consolidation.
The Associated Press contributed to this report.