Following reports of exclusive negotiations between Netflix and Warner Bros Discovery (WBD), a deal has swiftly been confirmed that will see the streaming giant acquire WBD’s TV and film studios and streaming division – including the likes of HBO Max, the Harry Potter Universe and DC Comics – at a total equity value of approximately $72 billion (€61.8bn) and an enterprise value of approximately $82.7 billion
The agreement follows a bidding war where Netflix seized the lead with a nearly $28-a-share offer that beat competing bidders including Paramount Skydance and Comcast.
“Our mission has always been to entertain the world,” said Ted Sarandos, co-CEO of Netflix. “By combining Warner Bros’ incredible library of shows and movies – from timeless classics like Casablanca and Citizen Kane to modern favorites like Harry Potter and Friends – with our culture-defining titles like Stranger Things, KPop Demon Hunters and Squid Game, we’ll be able to do that even better. Together, we can give audiences more of what they love and help define the next century of storytelling.”
“This acquisition will improve our offering and accelerate our business for decades to come,” commented Greg Peters, co-CEO of Netflix. “Warner Bros has helped define entertainment for more than a century and continues to do so with phenomenal creative executives and production capabilities. With our global reach and proven business model, we can introduce a broader audience to the worlds they create—giving our members more options, attracting more fans to our best-in-class streaming service, strengthening the entire entertainment industry and creating more value for shareholders.”
“Today’s announcement combines two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most,” added David Zaslav, President and CEO of WBD. “For more than a century, Warner Bros has thrilled audiences, captured the world’s attention, and shaped our culture. By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come.”
In June, WBD announced plans to separate its Streaming & Studios and Global Networks divisions into two separate publicly traded companies. This separation is now expected to be completed in Q3 2026, prior to the closing of the Netflix transaction. The newly separated publicly traded company holding the Global Networks division, Discovery Global, will include global television brands including CNN, TNT Sports in the US, and Discovery, free-to-air channels across Europe, and digital products such as Discovery+ and Bleacher Report.
Industry Reacts
Cinema owners were swift to voice their displeasure at news of a potential deal, calling it an “unprecedented threat” to the movie business.
“The proposed acquisition of Warner Bros by Netflix poses an unprecedented threat to the global exhibition business. The negative impact of this acquisition will impact theatres from the biggest circuits to one-screen independents in small towns in the United States and around the world,” said Cinema United President and CEO Michael O’Leary said in a press statement. “Cinema United stands ready to support industry changes that lead to increased movie production and give consumers more opportunities to enjoy a day at the local theatre. But Netflix’s stated business model does not support theatrical exhibition. In fact, it is the opposite.”
The Directors Guild of America (DGA) – whose president is Hollywood director Christopher Nolan – also reacted negatively to an update prior to a deal being agreed, and said in a statement: “The news that Netflix had secured exclusive rights to negotiate for WBD raises significant concerns for the DGA. We believe that a vibrant, competitive industry – one that fosters creativity and encourages genuine competition for talent – is essential to safeguarding the careers and creative rights of directors and their teams. We will be meeting with Netflix to outline our concerns and better understand their vision for the future of the company. While we undertake this due diligence we will not be commenting further.”
Additionally reacting to the news, Guy Bisson, Executive Director at Ampere Analysis – in comments posted on LinkedIn – said: “The benefits [to Netflix] are obvious. Netflix has for several years been reengineering itself into a vertically integrated studio operation, but snagging WBD gets it a volume of IP that it would take years, if not decades, to build on its own. That alone is a compelling case for the acquisition. Add to that major studio operations, the entire back catalogue of HBO shows (that have been performing very well for Netflix when licensed) and WBD’s suite of premium US sports rights through TNT and you have a no-brainer acquisition […] For the whole entertainment industry, the deal is an existential one. As Hollywood struggles to find its path in a challenging environment, the Silicon Valley disruptor cements itself in the Heart of Burbank; there is one certainty: things are going to change.”
Paolo Pescatore, media and telecom analyst at PP Foresight, said the sale was “a huge statement of intent and underlines Netflix aspirations to be a global leader in the new world order of streaming”.
He added the move made sense for Warner Bros, “but will provide a headache for Netflix,” noting: “This is uncharted waters and previous big media acquisitions have been poorly executed. If and once approved, Netflix will need to have a razor sharp focus on integration and execution.”
WGGB General Secretary, Ellie Peers, said: “There will be understandable concern about the impact of the Netflix Warner Bros deal, particularly from our screenwriting members in TV and film. A mega-merger like this raises red flags about competition, content and the implications for creators working in an increasingly global marketplace, at a time of industry contraction. As the UK faces these headwinds, it is vital that we protect our brilliant writing talent, our bold, distinctive and diverse storytelling and our unique creative eco-system, including our public service broadcasters. This is something we will continue to raise in our conversations with Government and others.”
“Collective agreements underpin our work as a trade union and we are proud to have made a historic deal with Netflix – the first of its kind for writers in the UK. Not only does it set minimum terms on pay and enshrine other rights, it also means we can raise issues of concern collectively on our members’ behalf, which we hope to do with Netflix early in the New Year. It is only right that the Netflix Warner Bros deal faces regulatory scrutiny and we will be watching the detail closely as it unfolds,” added Peers.
