Phoenix, AZ, December 5, 2025
Netflix has entered into a landmark agreement to acquire Warner Bros. Discovery’s film and television studios, along with its streaming services, for a total of $72 billion in a cash-and-stock deal. This acquisition aims to broaden Netflix’s content library significantly, integrating popular franchises such as ‘Game of Thrones’ and ‘Harry Potter.’ Antitrust concerns have emerged regarding the potential impacts on competition within the streaming market. The deal is anticipated to finalize after Warner Bros. spins off its cable operations in mid-2026.
Phoenix, AZ, December 5, 2025
Netflix has agreed to acquire Warner Bros. Discovery’s film and television studios, along with its streaming services, for $72 billion in a cash-and-stock deal valued at $82.7 billion enterprise value. This acquisition is set to reshape the entertainment industry by combining Netflix’s global streaming platform with Warner Bros.’ extensive content library, including franchises like “Game of Thrones,” “DC Comics,” and “Harry Potter.” The deal is expected to close after Warner Bros. separates its Discovery Global cable operations into a new publicly traded company in the third quarter of 2026.
Details of the Acquisition
The agreement stipulates that each Warner Bros. Discovery share will be acquired for $27.75, comprising $23.25 in cash and approximately $4.50 in Netflix stock per share. This structure reflects a strategic move by Netflix to enhance its content offerings and strengthen its position in the streaming market. The transaction is anticipated to close following Warner Bros.’ planned spin-off of its Discovery Global cable operations, which include networks like CNN and Discovery Channel, into a separate publicly traded company by mid-2026.
Antitrust Concerns and Industry Reactions
The proposed merger has raised significant antitrust concerns in both the United States and Europe. Critics argue that the consolidation of two major streaming platforms—Netflix and HBO Max—could reduce competition and negatively impact consumers. A group of prominent film producers has urged the U.S. Congress to intervene, expressing fears that the merger could lead to a significant economic and institutional crisis in Hollywood. They highlight concerns over Netflix’s dominant influence as both a buyer and distributor and call for stringent antitrust scrutiny of the deal.
In response to these concerns, Netflix has emphasized the potential benefits of the acquisition, including an expanded content library, the possibility of offering bundled services to subscribers, and the creation of additional jobs in media production. The company projects annual cost savings of at least $2 to $3 billion by the third year post-acquisition. Despite these projections, the deal is expected to undergo close scrutiny by regulatory bodies, particularly the U.S. Department of Justice, which is likely to prioritize consumer protection and market competition in its evaluation.
Market Reactions
Following the announcement, Warner Bros. Discovery’s stock experienced a nearly 3% increase in pre-market trading, reflecting investor optimism about the deal. In contrast, shares of Netflix and Paramount declined by more than 2%. This market response underscores the mixed reactions to the proposed merger, with stakeholders weighing the potential benefits against the challenges posed by regulatory reviews and industry consolidation.
Background Context
Netflix, founded in 1997, has evolved from a DVD rental service to a leading global streaming platform, offering a vast array of original and licensed content. Warner Bros. Discovery, formed in 2022 through the merger of WarnerMedia and Discovery, Inc., encompasses a diverse portfolio of media assets, including Warner Bros. Studios, HBO, and DC Entertainment. The proposed acquisition marks a significant consolidation in the media and entertainment sector, highlighting the ongoing trend of mergers and acquisitions aimed at achieving scale and content diversification in the competitive streaming landscape.
Frequently Asked Questions (FAQ)
What is the value of Netflix’s acquisition of Warner Bros. Discovery?
The acquisition is valued at $72 billion in equity, with a total enterprise value of approximately $82.7 billion. Each Warner Bros. Discovery share will be acquired for $27.75, comprising $23.25 in cash and approximately $4.50 in Netflix stock per share.
What content does Netflix gain from this acquisition?
Netflix will acquire Warner Bros. Discovery’s film and television studios, along with its streaming services, including HBO Max. This includes access to major franchises such as “Game of Thrones,” “DC Comics,” and “Harry Potter.”
When is the acquisition expected to close?
The transaction is expected to close after Warner Bros. separates its Discovery Global cable operations into a new publicly traded company in the third quarter of 2026.
What are the antitrust concerns associated with this deal?
The merger has raised significant antitrust concerns in both the United States and Europe, with critics arguing that the consolidation of two major streaming platforms—Netflix and HBO Max—could reduce competition and negatively impact consumers.
How have investors reacted to the announcement?
Following the announcement, Warner Bros. Discovery’s stock experienced a nearly 3% increase in pre-market trading, while shares of Netflix and Paramount declined by more than 2%, reflecting mixed reactions from investors.
Key Features of the Acquisition
| Feature | Details |
|---|---|
| Acquiring Company | Netflix |
| Target Company | Warner Bros. Discovery |
| Acquisition Value | $72 billion in equity; $82.7 billion enterprise value |
| Per Share Offer | $27.75 per Warner Bros. Discovery share |
| Content Acquired | Warner Bros. film and television studios, HBO Max streaming service, major franchises like “Game of Thrones,” “DC Comics,” and “Harry Potter” |
| Expected Closing Date | After Warner Bros. separates its Discovery Global cable operations into a new publicly traded company in the third quarter of 2026 |
| Antitrust Concerns | Potential reduction in competition and negative impact on consumers due to consolidation of major streaming platforms |
| Investor Reactions | Warner Bros. Discovery’s stock rose nearly 3% in pre-market trading; Netflix and Paramount shares declined by more than 2% |
Deeper Dive: News & Info About This Topic
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