Netflix announced Friday that it will acquire Warner Bros. Discovery’s studio and streaming operations, including HBO and HBO Max, in a $72 billion cash-and-stock transaction.
The deal, which could close within 12 to 18 months pending regulatory approval, aims to combine two major global entertainment companies.
The agreement includes Warner Bros. Motion Picture Group, Warner Bros. Television, DC Studios, and the HBO and HBO Max streaming services. Warner Bros. Discovery’s cable networks, including CNN, Discovery, and TNT Sports, will remain with a separate company. The transaction values Warner Bros. Discovery at $27.75 per share and assigns the acquired assets a total enterprise value of $82.7 billion, including debt.
Netflix co-CEO Ted Sarandos said the merger will allow the combined entity to offer audiences more entertainment options and expand the reach of Warner’s film and television franchises. Warner Bros. Discovery CEO David Zaslav added that the transaction positions the studio’s storytelling assets for long-term global distribution.
Democratic Sen. Elizabeth Warren highlighted potential monopoly risks, while Republican Sen. Roger Marshall noted possible effects on consumers, creators, and local businesses.
The deal follows months of bidding in which Comcast and Paramount reportedly submitted competing offers. Warner ultimately accepted Netflix’s bid for the streaming and studio assets only, leaving cable and news properties to form a separate company, Discovery Global, planned for public trading by the third quarter of 2026.
Regulators will now review the proposed merger. Both companies stated they anticipate completing the transaction within 12 to 18 months, contingent on antitrust clearance and the completion of Warner’s planned corporate separation.
