Netflix Reaches $72 Billion Agreement To Acquire Warner Bros. And Its Iconic Library

Netflix has confirmed a deal that would have been unimaginable a decade ago. The company has agreed to acquire Warner Bros. Discovery in a move that merges the world’s biggest paid streaming service with one of Hollywood’s oldest studios. It is a combination that immediately rewrites the dynamics of global entertainment, but leaves a larger question hanging over the industry about where this shift ultimately leads.

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A Multi-Billion Dollar Deal That Resets The Stakes

Under the agreement announced on Friday, Warner Bros. shareholders will receive $27.75 per share in a mix of cash and Netflix stock. The equity value of the transaction stands at $72 billion, while the enterprise value is estimated at $82.7 billion.

Before the deal closes, Warner Bros. will spin off its cable properties including CNN, TBS and TNT. This carve-out prepares the studio for a cleaner integration with Netflix, which has always existed outside the traditional TV ecosystem.

Why Netflix Is Making Its Biggest Move Ever

For Netflix, the acquisition represents a dramatic departure from how it built its empire. The company transformed itself from a DVD-by-mail service into Hollywood’s most valuable media brand by licensing content and then scaling original programming. But it never owned a legacy studio or deep archive—until now.

By securing Warner Bros., Netflix gains HBO and its influential library, spanning everything from The Sopranos to The White Lotus. The deal also hands over the sprawling Burbank studio lot, along with franchises including Harry Potter and Friends.

A Bidding War And A Shrinking TV Landscape

Netflix was not the only suitor. Paramount Skydance and Comcast also pursued Warner Bros., with tensions escalating as Paramount accused the studio of favouring Netflix during negotiations. The urgency around the sale came as traditional television faced sharp contraction. Warner Bros.’ cable network division reported a 23 per cent revenue drop in the most recent quarter, as both viewers and advertisers continued to shift away from linear TV.

Content Power And Regulatory Shadows

Both companies posted more than $39 billion in revenue last year, but Warner Bros.’ library gives Netflix a long-term advantage over rivals like Disney and Paramount. Regulators, however, are already examining the deal. Concerns around market concentration emerged quickly, with US lawmaker Darrell Issa warning that the acquisition could harm consumers.

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A Hollywood Reaction That Signals Uncertainty

The announcement unsettled parts of Hollywood, especially because Netflix has historically resisted traditional theatrical releases. With Warner Bros. now under its fold, the question becomes whether Netflix will maintain that stance or reshape its approach entirely.