Focus on the BIG picture.
Sunday, Dec 07, 2025
Outside the box.
Hollywood megadeal: Netflix acquires Warner Bros. Discovery for 83 billion dollars
Streaming giant wins bidding war, sets stage for sweeping consolidation of film and TV assets under Netflix umbrella
The race to acquire Warner Bros. Discovery (WBD) has reached its conclusion.
On Friday, Netflix announced that it will purchase Warner Bros. Discovery’s film and television studios, as well as its streaming service HBO Max, in a deal valued at 83 billion U.S. dollars, or 27.75 dollars per share.
The agreement follows a fierce bidding war that pitted Netflix against rivals Paramount Skydance and Comcast.
According to media reports, Paramount — under new leadership — initially offered a full outright purchase of WBD using cash, backed by funding from Middle Eastern sovereign wealth funds.
:contentReference[oaicite:6]{index=6} Meanwhile, Netflix and Comcast aimed their offers more narrowly, targeting Warner’s studios and streaming operations while excluding its cable-network assets.
Under the terms of the agreement, certain legacy television networks — including cable channels — will be spun off into a standalone entity prior to the acquisition’s completion.
That restructuring is expected to conclude before Netflix formally takes control.
If finalised, this acquisition would represent a historic shift in the entertainment landscape.
Netflix, already the largest streaming service worldwide, will for the first time own a major legacy Hollywood studio.
The combined libraries will include much-loved films and television franchises, dramatically expanding Netflix’s content assets and production capabilities.
Yet the deal remains subject to regulatory review in the United States and abroad; antitrust authorities are expected to examine whether such consolidation reduces competition and limits diversity in film and television production.
Several prominent producers have already voiced concern.
In an open letter to Congress, they argued that a Netflix-owned Warner could undermine theatrical cinema by deprioritising films meant for theaters in favour of direct streaming distribution.
“They have no incentive to support theatrical releases, but a strong incentive to end them,” the letter states.
The acquisition, if successful, would not only reshape the balance of power in Hollywood, but also set a precedent for how global media — streaming services and traditional studios alike — evolve in the digital age.
On Friday, Netflix announced that it will purchase Warner Bros. Discovery’s film and television studios, as well as its streaming service HBO Max, in a deal valued at 83 billion U.S. dollars, or 27.75 dollars per share.
The agreement follows a fierce bidding war that pitted Netflix against rivals Paramount Skydance and Comcast.
According to media reports, Paramount — under new leadership — initially offered a full outright purchase of WBD using cash, backed by funding from Middle Eastern sovereign wealth funds.
:contentReference[oaicite:6]{index=6} Meanwhile, Netflix and Comcast aimed their offers more narrowly, targeting Warner’s studios and streaming operations while excluding its cable-network assets.
Under the terms of the agreement, certain legacy television networks — including cable channels — will be spun off into a standalone entity prior to the acquisition’s completion.
That restructuring is expected to conclude before Netflix formally takes control.
If finalised, this acquisition would represent a historic shift in the entertainment landscape.
Netflix, already the largest streaming service worldwide, will for the first time own a major legacy Hollywood studio.
The combined libraries will include much-loved films and television franchises, dramatically expanding Netflix’s content assets and production capabilities.
Yet the deal remains subject to regulatory review in the United States and abroad; antitrust authorities are expected to examine whether such consolidation reduces competition and limits diversity in film and television production.
Several prominent producers have already voiced concern.
In an open letter to Congress, they argued that a Netflix-owned Warner could undermine theatrical cinema by deprioritising films meant for theaters in favour of direct streaming distribution.
“They have no incentive to support theatrical releases, but a strong incentive to end them,” the letter states.
The acquisition, if successful, would not only reshape the balance of power in Hollywood, but also set a precedent for how global media — streaming services and traditional studios alike — evolve in the digital age.
