Netflix agreed to buy Warner Bros. Discovery’s studio and streaming business, significantly bulking up Netflix’s media powerhouse.
The $72 billion cash-and-stock deal, nearly $28 per share, brings the total enterprise value to approximately $82.7 billion.
The contentious, weekslong acquisition included Paramount Skydance and Comcast throwing their hats in the ring.
The deal is expected to close after Warner Bros. Discovery completes its plans to split its cable business, which includes TNT and CNN, anticipated to be done by the third quarter of 2026. Netflix will acquire HBO Max, Warner Bros.’s film studio and streaming service.
The transaction would close in 12 to 18 months, the companies said.
“This acquisition will improve our offering and accelerate our business for decades to come,” said 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.”
Netflix holds the title of the world’s largest paid streaming service, and combining Warner Bros. Discovery assets turns the two into one megalopolis.
“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,” Warner Bros. Discovery President and CEO David Zaslav said. “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.”
Warner Bros. Discovery films will continue to be released in theaters, Netflix said, easing concerns that it would bring a blow to traditional cinema.
Federal regulators need to approve the deal, and politics can be a significant player in these bids.
David Ellison, the Paramount chief executive, has close ties with the Trump administration, which has praised his family’s ownership of Paramount. Earlier this week, Mr. Ellison questioned the sale process in a letter pointing to the favorable treatment of Netflix.
Brian Roberts, Comcast’s chief executive, has been disfavored by President Trump, who called Mr. Roberts a disgrace to broadcasting.
The Trump administration and Europe would likely evaluate concerns that Netflix will have monopoly-like power in the marketplace, as the world’s biggest streaming service grows ever bigger.
