Netflix has agreed to purchase Warner Bros Discovery’s TV and film studios and streaming division for $72 billion, marking a significant acquisition that places one of Hollywood’s most valued and historic assets under the control of the streaming pioneer that has reshaped the media industry.
The agreement, announced on Friday, comes after a weeks-long bidding war where Netflix took the lead with a nearly $28-a-share offer, surpassing Paramount Skydance’s nearly $24 bid for the entirety of Warner Bros Discovery, including the cable TV assets intended for a spinoff.
Warner Bros Discovery shares closed at $24.5 on Thursday, giving it a market value of $61 billion.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
Acquiring the owner of major franchises such as “Game of Thrones,” “DC Comics,” and “Harry Potter” will further shift the power balance in Hollywood towards the streaming giant, which has built its dominance without major acquisitions or a large content library, aiding its efforts to fend off competition from Walt Disney and the Ellison family-backed Paramount.
Analysts have suggested that Netflix is motivated by the desire to secure long-term rights to popular shows and films, reducing reliance on external studios as it expands into gaming and seeks new growth opportunities following the success of its crackdown on password sharing.
However, the deal is expected to face significant antitrust scrutiny in Europe and the US as it would grant the world’s largest streaming service ownership of a competitor that houses HBO Max and boasts nearly 130 million streaming subscribers.
David Ellison-led Paramount, which initiated the bidding war with a series of unsolicited offers and has close connections with the Trump administration, questioned the sale process earlier this week in a letter alleging favorable treatment towards Netflix.
To alleviate concerns about market concentration, Netflix argued in deal discussions that a potential merger of its streaming service with HBO Max would benefit consumers by reducing the cost of a bundled offering, Reuters reported on Tuesday.
The company has also assured Warner Bros Discovery that it would continue releasing the studio’s films in cinemas to address fears that the deal might eliminate another studio and significant source of theatrical films, according to media reports.
