In a sweeping move set to reshape Hollywood, Netflix, Inc. has entered into a definitive agreement to acquire Warner Bros. Discovery, Inc.’s television and film studios along with its streaming division for an equity value of $72 billion, with the enterprise value reaching about $82.7 billion when debt is included.
According to Reuters, the deal grants Netflix control of storied franchises including “Game of Thrones,” the DC Comics universe, and the Harry Potter library, assets that mark some of Hollywood’s most prized intellectual property.
Under the terms, each Warner Bros. Discovery shareholder will receive roughly $27.75 per share, consisting of cash plus Netflix stock. This acquisition follows a bidding war with competitors like Paramount Skydance and Comcast Corporation, and is contingent on the spinoff of Warner Bros. Discovery’s Global Networks division, a step scheduled for Q3 2026.
From Netflix’s perspective, the move is defensive and strategic: they argue they are “not doing this because we’re in trouble,” but rather because they “understand the business.” Greg Peters, Netflix’s co‐CEO, said, “It’s true. Historically, many of these mergers haven’t worked. A lot of these failures were because the companies doing the acquisitions didn’t understand the entertainment industry.”
However, the deal is expected to face strong antitrust scrutiny in both the U.S. and Europe, given its potential to consolidate market power in streaming and content distribution.