Netflix just rewrote the rules of Hollywood. In a US$82.7 billion deal that marks one of the most significant shake-ups in modern entertainment history, the streaming giant has acquired Warner Bros. Discovery’s studios and streaming assets. The agreement will give Netflix control over Warner Bros.’ iconic film and television library, including powerhouse brands like HBO, DC, and legendary titles such as Game of Thrones, Harry Potter, and Friends.
The deal was finalised Friday following a long and competitive bidding process that saw Netflix edge out Comcast and Paramount Skydance. It includes a mix of cash and stock valued at US$27.75 per Warner Bros. Discovery share, with a total enterprise value of US$82.7 billion (equity value of US$72.0 billion). Both companies’ boards unanimously approved the agreement, which is contingent on the successful spin-off of Warner Bros. Discovery’s Global Networks division into a separate publicly traded company, set to be completed in the third quarter of 2026.
HBO’s catalogue joins Netflix’s already diverse slate of originals. Titles that had once been pulled from Netflix due to rights reshuffling, such as Friends and The Big Bang Theory, are expected to remain permanently under its roof. The company also gains control of TNT Sports UK & Ireland, adding Premier League and Champions League matches to its growing international sports play.
Executives from both sides spoke of the long-term impact. “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 favourites 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.”
“This acquisition will improve our offering and accelerate our business for decades to come,” continued 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.”
“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,” said David Zaslav, President and CEO of Warner Bros. Discovery. “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.”
Netflix has pre-emptively offered a US$5 billion breakup fee if the transaction is blocked and has given assurances that Warner Bros. films will still receive theatrical releases. Its television production arm will also retain the freedom to create content for third parties, while Netflix remains committed to exclusive content for its platform.
Financially, the deal includes an estimated US$2 to US$3 billion in cost savings through back-end integration, primarily through the consolidation of overlapping tech and support operations. More importantly, it gives Netflix the kind of in-house production scale that studios used to wield in the pre-streaming era, potentially accelerating the pace and volume of original content.
The streaming wars are entering a new phase, one less defined by rivalry and more by consolidation. Netflix, once seen as the disruptor, now positions itself as the central pillar of the entertainment world, absorbing what was once one of its fiercest competitors. As traditional networks splinter and global streaming becomes the norm, Netflix has placed a long bet on being the last brand standing.
Natalie is a big fan of anything related to movies, TV shows, and anime — you name it. When she’s not reading or being a dedicated cinephile, she’s probably playing gacha and tabletop games, or daydreaming of Caleb from Love and Deepspace.
Kevin Low
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