Streaming platform Netflix has finalised a definitive agreement to purchase Warner Bros., including its film and television studios, streaming business (HBO, HBO Max), and associated content libraries. The agreement values Warner Bros. at USD 72.0 billion in equity and about USD 82.7 billion including debt.
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Under the terms of the deal, each share of Warner Bros. Discovery (WBD) will be exchanged for US$27.75 per share in a combination of cash and Netflix stock. The acquisition is expected to finalise after WBD completes its planned spin-off of its Global Networks business (channels such as CNN, TNT, etc.) into a separate public entity — a restructuring anticipated by the third quarter of 2026.
What It Means for Hollywood
With the acquisition, Netflix instantly gains control of one of Hollywood’s most storied studios and the rights to a vast catalogue of high-value intellectual property, including blockbuster franchises and premium TV content. Titles from Warner Bros’ stable — ranging from legacy classics to modern hits — are now within Netflix’s portfolio. This move marks a dramatic shift for Netflix, which until now has primarily grown through original content development and licensing.
In its official statement, Netflix said the combined company will deliver an “extraordinary entertainment offering”, merging Warner Bros’ century-long legacy with Netflix’s global streaming reach and production capabilities.
Netflix also committed to maintaining Warner Bros’ existing operations, including theatrical release commitments—a move aimed at assuaging fears from the film-theatre industry that the acquisition would kill big-screen releases for studio projects.
What are the Industry Challenges Ahead
Given the scale of the merger—combining two of the largest players in global entertainment—the deal is almost certain to draw regulatory scrutiny in the United States and Europe. Analysts have warned about potential concerns over market concentration, reduced competition, and the overall impact on independent studios and theatrical distribution.
Industry observers note this could alter the structure of Hollywood: with Netflix transforming into a full-blown studio, traditional rivalries and distribution strategies may face major disruption.
Financial and Strategic Implications for Netflix
The Warner Bros. deal is expected to strengthen Netflix’s financial position. The company has said it could save USD 2–3 billion a year within the next three years as the two businesses combine and certain costs are reduced. Netflix has also stated that the acquisition will help it grow faster in the long term and expand its presence in global markets. By gaining Warner Bros’ content library of movies and shows, along with its production studios, Netflix will not have to depend as much on other companies for content. This strengthens its position against competitors like Disney+ and Amazon Prime Video.
For viewers, the deal may result in a much larger collection of films and series on Netflix, including older classics and big new titles. Netflix pledge to continue the release of major films in cinemas, which means theatre experiences are expected to continue for big-budget projects.
What This Means for Consumers & Creatives
At the same time, some experts worry that such a large merger might reduce competition in the industry. This could eventually affect subscription prices, limit creative variety, or change how much freedom smaller creators have. For now, Netflix and Warner Bros. say the focus is on building a stronger combined entertainment offering for audiences worldwide.