Netflix Acquires Warner Bros. Studio and Streaming Business for $72 Billion

Netflix has made a blockbuster deal with Warner Bros. Discovery, acquiring the studio and streaming business for a whopping $72 billion. This move will bring together two entertainment powerhouses behind iconic franchises like “Harry Potter” and “Friends” and shift the industry landscape.

In a statement, David Zaslav, CEO of Warner Bros. Discovery, highlighted Warner Bros.’ century-long legacy of captivating audiences and shaping culture. By joining forces with Netflix, the goal is to continue delivering compelling stories for generations to come.

The deal involves a cash and stock agreement valued at $27.75 per Warner share, with an enterprise value totaling approximately $82.7 billion. It’s anticipated to close after Warner separates its Discovery Global cable operations into a new publicly-traded entity in the third quarter of 2026.

Following the announcement, Warner Bros.’ shares saw a nearly 3% rise in premarket trading, while Netflix and Paramount experienced a more than 2% dip. Despite this, Netflix is committed to continuing theatrical releases for Warner’s movies as per their existing contracts.

Ted Sarandos, co-CEO of Netflix, emphasized the company’s mission to entertain global audiences and expressed excitement about merging with Warner to offer more of what viewers love. However, concerns have been raised about the impact on movie theaters worldwide, with Cinema United, a trade association for cinema screens, warning of potential closures and job losses.

While Netflix has traditionally focused on online content, the acquisition of Warner Bros.’ historic studios signifies a significant shift in strategy. The deal comes after a competitive bidding process, with Paramount initially considered a frontrunner before Netflix emerged as the successful acquirer.

This acquisition marks a pivotal moment in the entertainment industry, with Netflix and Warner Bros. poised to reshape how we experience movies and TV shows in the years to come.