Netflix agreed to buy Warner Bros Discovery’s studios and streaming unit for $72 billion. The deal gives Netflix control of HBO Max, iconic film franchises, and content libraries. Shares of Warner Bros Discovery rose 3.2%, while Netflix fell slightly.
The acquisition followed a bidding war with Paramount and Comcast, with Netflix offering $27.75 per share, including cash and stock. Warner Bros Discovery will first spin off its global networks unit before the deal closes. Netflix expects annual cost savings of $2-3 billion within three years.
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The deal provides Netflix access to major franchises, including Harry Potter, Game of Thrones, and DC superheroes. Netflix Co-CEO Ted Sarandos said the acquisition will help the company “entertain the world” and expand original content production.
Industry experts warn of antitrust scrutiny in the U.S. and Europe, citing reduced competition in Hollywood. Cinema United called it an “unprecedented threat” to movie theaters worldwide. Netflix has pledged to continue theatrical releases and explore bundled streaming offers.
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Analysts say Netflix aims to lock long-term rights to hit shows, expand gaming, and diversify growth. The acquisition also strengthens its position amid slowing subscriber growth and increased competition from other studios.