Netflix has struck a landmark deal to buy the film and streaming businesses of Warner Bros Discovery for $72bn (£54bn), a move set to reshape the entertainment industry.
The agreement follows a hard-fought bidding battle in which Netflix emerged ahead of Comcast and Paramount Skydance.
The acquisition includes Warner Bros’ extensive film and television catalogue, its powerful franchises such as Harry Potter and Game of Thrones, and the streaming service HBO Max.
The deal still needs regulatory approval, a hurdle that could prove significant as unions and industry groups voice strong opposition.
The Writers Guild of America (WGA) has already criticised the agreement, warning that it would harm workers, limit creative opportunities, and leave consumers with fewer choices.
Netflix co-chief executive Ted Sarandos said the company remained confident the acquisition would be cleared.
He described Netflix as moving “full speed” toward closing the transaction.
Sarandos said the combined libraries would strengthen Netflix’s position by pairing Warner Bros’ century-old legacy with the streamer’s global reach and popular titles such as Stranger Things.
“Warner Bros defined the last century of entertainment, and together we can define the next one,” he said.
Questions remain about the future of HBO as a standalone streaming brand. Co-chief executive Greg Peters said HBO’s identity remains valuable but noted it was too early to discuss how the company might package or present its offerings after the merger.
Netflix expects the deal to generate $2bn to $3bn in cost savings, mostly through removing duplicate roles in technology and support services.
Netflix said Warner Bros film releases will continue to debut in cinemas, and the Warner Bros television studio will still be allowed to produce content for external buyers.
Netflix will maintain its focus on creating programming exclusively for its own platform.
Sarandos acknowledged that the size of the acquisition may have surprised some investors but called it a rare chance to strengthen Netflix’s long-term future.
Warner Bros Discovery chief executive David Zaslav echoed that view, describing the deal as the union of “two of the greatest storytelling companies in the world” and saying it would ensure audiences worldwide continue to access meaningful stories “for generations to come.”
The cash-and-stock offer values Warner Bros shares at $27.75 each, giving the company an equity value of $72bn and a total enterprise value, including debt, of about $82.7bn. Both companies’ boards unanimously approved the agreement.
Concerns are rising across Hollywood. The WGA’s statement called for regulators to block the merger, arguing it would eliminate jobs, depress wages, and reduce both the volume and diversity of new content.
Cinema United chief executive Michael O’Leary said the merger poses “an unprecedented threat” to cinemas of all sizes, from major chains to one-screen theatres in small towns.
Netflix will assume control once Warner Bros completes its plan to split its business into two separate companies next year.
Its global networks division, which includes CNN, TNT Sports in the US, and Discovery’s European channels, will form a new company called Discovery Global. TNT Sports International will remain with the streaming and studios division being sold to Netflix.
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