Netflix Agrees to $72 Billion Deal to Acquire Warner Bros Discovery Studios
Netflix has agreed to acquire Warner Bros Discovery's film and TV studios for $72 billion, paying $27.75 per share and valuing the assets at approximately $82.7 billion. This deal will consolidate Warner Bros Discovery's extensive library, including Harry Potter, Game of Thrones, and DC content, with Netflix's own titles such as Stranger Things and Squid Game.
The transaction's completion depends on separating Discovery Global, which owns CNN and TNT sports channels, from Warner Bros Discovery prior to closing. The deal is expected to face regulatory scrutiny from US and European competition authorities, with antitrust reviews likely to extend into 2026 and 2027. A possible route to approval might involve the divestment of HBO from Warner Bros Discovery.
Several rivals participated in the auction, including Paramount, Skydance, and Comcast. Paramount has claimed that the process was biased in Netflix's favor. Market reactions included a pre-market decline of over 3% in Netflix shares, which then recovered after market opening, while Warner Bros Discovery shares rose about 2%.
Netflix has stated it will not accept a $5.8 billion break fee unless there is at least a modest chance the deal will close. The timeline suggests the acquisition will be completed no earlier than late 2026 or 2027.
