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Netflix has agreed to acquire Warner Bros Discovery’s TV and film studios and its streaming division in a $72 billion deal, cementing the streaming pioneer’s control over one of Hollywood’s most storied entertainment empires.
The agreement, announced Friday, concludes a weeks-long bidding battle in which Netflix ultimately prevailed with an offer of nearly $28 per share, outbidding Paramount Skydance’s proposal of almost $24 a share for the entire Warner Bros Discovery group, including its cable TV networks that are set to be spun off.
Warner Bros Discovery shares closed at $24.50 on Thursday, implying a market capitalization of about $61 billion.
A New Hollywood Power Center
By taking over the owner of blockbuster franchises such as “Game of Thrones,” “DC Comics” and “Harry Potter,” Netflix would significantly tilt the balance of power in Hollywood. The company, which originally rose to dominance without large-scale acquisitions or a deep legacy library, would suddenly control one of the industry’s richest content catalogs.
The move is seen as part of Netflix’s strategy to secure long-term rights to hit series and films, reducing its dependence on third-party studios while it expands into gaming and searches for new growth engines following the success of its crackdown on password sharing.
The deal also strengthens Netflix’s competitive position against traditional rivals like Walt Disney and the Ellison family-backed Paramount, both of which have been racing to build their own streaming ecosystems.
Regulatory Scrutiny Likely
The transaction is expected to attract intense antitrust scrutiny in both the U.S. and Europe. It would combine the world’s largest streaming platform with a major rival that operates HBO Max and counts nearly 130 million streaming subscribers globally.
To address regulatory concerns, Netflix has argued in deal discussions that combining its service with HBO Max could ultimately benefit consumers by allowing the companies to offer lower-cost bundled subscriptions, according to a Reuters report earlier in the week.
Netflix has also reportedly assured Warner Bros Discovery that it plans to continue releasing the studio’s films in cinemas, seeking to counter fears that the acquisition would effectively erase another standalone movie studio and reduce the flow of theatrical releases.
Paramount Questions Process
The rival bidder, David Ellison–led Paramount, which initiated the contest with a series of unsolicited offers and maintains close ties to the Trump administration, has already challenged the sale process. In a letter earlier this week, Paramount alleged that the board of Warner Bros Discovery had given preferential treatment to Netflix during negotiations.
If approved, the deal would mark one of the largest and most consequential media mergers in recent history, reshaping the competitive landscape for streaming, theatrical releases, and franchise-driven entertainment for years to come.
