Netflix buys Warner Bros: In a landmark move that could reshape the global entertainment industry, Netflix has announced a $72 billion agreement to acquire the film and streaming businesses of Warner Bros Discovery. The deal positions Netflix as a dominant force in Hollywood, surpassing rivals such as Paramount, Skydance and Comcast after months of bidding.
Warner Bros brings with it some of the world’s most iconic franchises, including Harry Potter, Game of Thrones, and the entire HBO Max catalogue. Netflix’s leadership believes this merger will unlock unprecedented storytelling power for audiences worldwide.
A New Era in Global Entertainment
Netflix co-CEO Ted Sarandos expressed strong confidence in securing regulatory approval and emphasised the transformative potential of the acquisition. He stated that blending Netflix’s originals—like Stranger Things—with Warner Bros’ legendary productions will help “define the next century of storytelling.”
His co-CEO, Greg Peters, acknowledged HBO’s strong global brand value but noted that detailed plans on integrating or positioning HBO within Netflix will be revealed later.
Cost Savings and Content Expansion
Netflix expects to achieve $2–3 billion in yearly savings, primarily by removing overlaps in technology and operational support. Despite the merger, Warner Bros will continue to:
- Release films in theatres
- Allow its television studio to create shows for third-party platforms
- Maintain production of Netflix-exclusive originals
The acquisition provides Netflix with a major boost in studio capacity and is likely to expand its investment in blockbuster content.
Regulators and Industry Reaction: Netflix buys Warner Bros
Although both companies’ boards unanimously approved the deal, regulators must still give the green light. Analysts say approval is uncertain due to the scale of consolidation.
Industry experts expect:
- Reduced film and TV output from the combined entity
- Strong pushback from Hollywood unions
- Higher subscription costs for consumers
- A reorientation of cinema and streaming markets
Media analyst Tom Harrington noted that if approved, the deal would “reorient Hollywood” and potentially lead to significant cutbacks in production.
Implications for Consumers
Analysts predict Netflix prices may rise as the platform absorbs HBO content and consolidates its streaming presence. HBO Max may eventually become secondary or integrated into Netflix’s ecosystem.
Despite concerns, Netflix has reassured the film community that Warner Bros movies will continue premiering in theatres—a gesture seen as an important commitment to Hollywood.
Deal Structure: Netflix buys Warner Bros
- Value per Warner Bros share: $27.75
- Total equity value: $72 billion
- Enterprise value: Approximately $82.7 billion, including debt
Netflix will finalise the acquisition after Warner Bros completes its planned separation of streaming/studios from its global networks division. The networks’ business will operate independently as Discovery Global, covering channels like CNN, TNT Sports, and Discovery.
A Historic Shake-Up in Hollywood
Industry experts see this acquisition as one of the biggest shake-ups in modern Hollywood. It signals Netflix’s ambition to secure long-term dominance in streaming and studio production.
Danni Hewson of AJ Bell highlighted that the market will closely watch Netflix’s future pricing power and how much of its cost savings will benefit subscribers.
Regardless of regulatory hurdles, the deal marks a pivotal moment in entertainment history — one that could reshape storytelling, production, and streaming for decades.
