Netflix has reached an unprecedented agreement to purchase the film and streaming divisions of Warner Bros Discovery in a massive deal valued at $72 billion (£54 billion), marking one of the most significant shake-ups the global entertainment industry has seen in years. The streaming leader outbid major competitors—including Comcast and Paramount Skydance—following an extended and highly competitive bidding war. Warner Bros controls some of the world’s most recognizable entertainment assets, such as the Harry Potter and Game of Thrones franchises, along with the HBO Max streaming platform.

Although the acquisition is poised to create a dominant force in film and television production, it still requires approval from regulators who will evaluate potential antitrust concerns. Netflix’s co-CEO Ted Sarandos expressed strong confidence that the deal will clear all regulatory hurdles, adding that the company has already begun accelerating integration plans. He explained that merging Warner Bros’ extensive catalogue with Netflix’s established roster of original hits—including Stranger Things—would ultimately expand viewing options and help steer the evolution of global entertainment. “Warner Bros shaped entertainment for the last hundred years; together we can shape the next,” he stated.

Co-CEO Greg Peters acknowledged the global prestige of the HBO brand but said it was too early to outline how HBO Max may be incorporated into Netflix’s ecosystem. Netflix anticipates $2–$3 billion in cost reductions, primarily by eliminating duplicated back-end operations across both companies. The company also confirmed that Warner Bros’ theatrical releases will continue, and its television studios will still be free to create shows for external networks, though Netflix’s priority remains exclusive programming.

Sarandos described the acquisition as a landmark moment for both organisations and admitted it might have caught some investors off guard. Still, he framed it as a strategic, long-term investment that will solidify Netflix’s dominance for decades ahead. Warner Bros Discovery chief executive David Zaslav praised the agreement, calling it a merger of “two of the world’s greatest storytelling companies” and emphasising that their combined creative strengths would ensure that audiences everywhere continue to enjoy exceptional content.

Under the cash-and-stock terms, Warner Bros shareholders will receive $27.75 per share. When debt is included, the total deal value rises to roughly $82.7 billion, with $72 billion representing the equity portion. Both companies’ boards have unanimously signed off.

Once completed—following Warner Bros’ planned separation of its studio and streaming assets from its global networks division next year—the acquisition is expected to substantially expand Netflix’s production capabilities and boost its portfolio of original works. The global networks unit will transition into Discovery Global, keeping major U.S. cable channels like CNN and TNT Sports, as well as Discovery-branded networks abroad, while TNT Sports International will be included in the sale to Netflix.

Paramount had previously made an unsuccessful attempt to buy the whole Warner Bros group, including its cable networks, in October, but its offer was rejected before the company was officially put up for sale.