Asger Risom
A sweeping shake-up is set to reverberate through Hollywood after Netflix reached an agreement to buy the core studio and streaming assets of Warner Bros Discovery.
A sweeping shake-up is set to reverberate through Hollywood after Netflix reached an agreement to buy the core studio and streaming assets of Warner Bros Discovery. The move follows an intense contest among major media players and positions Netflix at the helm of one of the industry’s most storied catalogues.
The companies confirmed the pact on Friday, marking one of the largest entertainment acquisitions to date. Reuters reported that Netflix outpaced rival bids with an offer valued at nearly $28 per share.
Changing the balance
The deal hands Netflix control of franchises such as “Game of Thrones,” “DC Comics” and “Harry Potter,” according to Reuters. Analysts told the news agency the purchase strengthens Netflix’s push to lock down long-term rights as it broadens into gaming and seeks fresh revenue streams.
Netflix co-CEO Ted Sarandos said in a statement, “Together, we can give audiences more of what they love and help define the next century of storytelling.” The agreement further distances the company from competitors such as Disney and Paramount, which had sought the same assets.
Warner Bros Discovery ended Thursday trading at $24.5 per share, placing its market value at roughly $61 billion, Reuters reported.
Rising regulatory pressure
Regulators in the U.S. and Europe are expected to scrutinize the transaction, which would place HBO Max and its nearly 130 million subscribers under Netflix’s control. According to Reuters, Netflix has argued that integrating the services could reduce costs for viewers by enabling discounted bundles.
Paramount Skydance, backed by David Ellison, had launched early unsolicited offers and questioned the fairness of the sale process in a letter this week, Reuters noted. The company’s concerns emerged as bidding intensified between potential buyers.
Media reports cited by Reuters said Netflix pledged to maintain theatrical releases for Warner Bros films, an attempt to calm fears about further erosion of the traditional studio system.
Price and timeline
Reuters reported that the cash-and-stock transaction will provide Warner Bros Discovery shareholders with $23.25 in cash and about $4.50 in Netflix stock per share, valuing the company at $27.75 a share — roughly $72 billion in equity, or $82.7 billion including debt.
The deal is scheduled to close after the spinoff of Discovery Global, expected by the third quarter of 2026. Netflix told Reuters it anticipates at least $2 billion to $3 billion in annual cost savings by the third year after completion.
Sources: Reuters
