Hollywood heavyweight acquires film, TV studio, and streaming service for $72 billion

ater footprint. Under the proposed acquisition, Netflix has promised to continue theatrical releases for Warner’s studio films, honoring Warner’s contractual agreements for movie releases.

Netflix has mainly kept its original content within its core online platform, but there have been a few exceptions, like limited theater screenings of a “KPop Demon Hunters” sing-along and the upcoming “Stranger Things” series finale.

As recently as October, when Warner indicated it was open to a potential sale of its business, Netflix co-CEO Ted Sarandos mentioned on an earnings call that the company had been clear in the past about not being interested in owning legacy media networks and that stance remained unchanged. He stated that Netflix can and will be picky about acquisitions, leaving the door open for a bid for Warner.

This announcement comes after a months-long bidding war for Warner Bros. Discovery. Rumors of interest from Netflix and NBC owner Comcast emerged in the fall, with Paramount also reportedly making cash offers to buy Warner’s entire company, including its cable business housing networks like CNN and Discovery.

In conclusion, the deal between Netflix and Warner Bros. Discovery to acquire the legacy Hollywood giant’s studio and streaming business for $72 billion is a significant move that could reshape the entertainment industry by bringing two major players together. This acquisition is expected to close after Warner separates its Discovery Global cable operations into a new publicly-traded company in the third quarter of 2026. Shares of Warner Bros. rose nearly 3% in premarket trading, while shares of Netflix and Paramount fell more than 2%. It will be interesting to see how the integration of Warner’s legacy studios into Netflix will impact the future of streaming entertainment.