Streaming giant Netflix has announced plans to acquire Warner Bros. Discovery in a deal valued at nearly $83 billion, marking the largest entertainment industry merger of the decade.
The acquisition will hand Netflix control of an extensive film and television library, including classics such as Casablanca and Citizen Kane, along with globally acclaimed franchises like The Sopranos, Game of Thrones, and the Harry Potter series. The deal also brings HBO Max under Netflix’s umbrella, further expanding its streaming dominance.
“Together, we can give audiences more of what they love and help define the next century of storytelling,” Netflix co-CEO Ted Sarandos said, highlighting the company’s ambitions beyond hits like Stranger Things, KPop Demon Hunters, and Squid Games.
The agreement values Warner Bros. Discovery at $27.75 per share, representing approximately $72 billion in equity and an enterprise value of about $82.7 billion. The company’s shares closed at $24.54 on Thursday on the Nasdaq.
David Zaslav, President and CEO of Warner Bros. Discovery, hailed the merger, saying it brings together “two of the greatest storytelling companies in the world.” Both companies’ boards approved the deal unanimously, with closure expected within 12 to 18 months.
Analysts, however, warn that the merger is likely to face intense regulatory scrutiny. Kathleen Brooks, research director at XTB, cautioned that the deal could ignite fears of a Netflix monopoly in the entertainment industry, describing the combined entity as “a colossus in the TV and movie business.”
Netflix’s stock dipped Thursday as speculation over the merger grew, triggering concerns about how the tech giant — which has never undertaken a deal of this scale — will manage the expanded empire.
Warner Bros. Discovery officially put itself up for sale in October after receiving multiple unsolicited offers, abandoning its earlier plan to split into two entities. Paramount, now owned by the billionaire Ellison family, had been an early suitor, along with Comcast’s NBCUniversal.
According to Bloomberg, Netflix joined an intense bidding round alongside Paramount, Skydance, and Comcast, negotiating through the U.S. Thanksgiving holiday. Netflix is reportedly securing a massive bridge loan worth tens of billions of dollars to complete the purchase.
But the potential takeover has unsettled some Hollywood heavyweights. Titanic director James Cameron warned ahead of the announcement that a Netflix acquisition of Warner Bros. would be “a disaster,” citing fears that the streaming giant could further limit theatrical film releases.
If approved, the deal will reshape Hollywood’s competitive landscape, surpassing Disney’s $71 billion acquisition of Fox in 2019 and cementing Netflix’s place at the forefront of global entertainment.
