Netflix has agreed to purchase the film and streaming division of Hollywood giant Warner Bros. Discovery in a landmark deal valued at $72 billion.
Netflix outbid major competitors—including Comcast and Paramount Skydance—to become the highest bidder for Warner Bros., which owns the rights to globally renowned franchises such as Harry Potter and Game of Thrones, as well as the HBO Max streaming platform.
If approved, the acquisition would mark one of the most significant shake-ups in the history of the U.S. film and media industry. However, analysts caution that the deal may face scrutiny from competition authorities due to its scale and potential market implications.
Netflix co-CEO Ted Sarandos said the merger would give viewers even greater access to iconic films like Casablanca and timeless series such as Friends, while strengthening Netflix’s long-term strategy.
“Warner Bros. has defined the past century of entertainment, and with this combination, we can define the next,” Sarandos said.
He added that although the move may surprise some shareholders, it represents a rare opportunity to secure Netflix’s success for decades to come.
Warner Bros. Chairman and CEO David Zaslav described the agreement as a union of “two of the world’s greatest storytelling companies.”
The cash-and-stock deal is priced at $27.75 per Warner Bros. share, valuing the company at $82.7 billion including debt and share value. The cash or share-equivalent price stands at $72 billion.
Both companies’ boards of directors have unanimously approved the transaction.
The acquisition is expected to enhance Netflix’s studio production capacity and significantly expand its investment capabilities.
