Netflix acquired Warner Bros. Confirms $72B deal to buy Discovery’s studios and streaming arms

In a major change for Hollywood, Netflix has announced a deal for Warner Bros. on December 5, 2025. Announced a definitive agreement to acquire Discovery’s (WBD) film and TV studios, HBO, HBO Max streaming platform and gaming business for an equity value of $72 billion – a total enterprise value of $82.7 billion including debt. With a valuation of WBD per share at $27.75 ($23.25 cash + $4.50 Netflix stock), this cash-and-stock deal bested rivals such as Paramount Skydance ($24/share) and Comcast, following months of competition after WBD was open to offers.

Prior to the announcement, WBD shares were at $24.50, implying a market cap of $61B; The deal premium sent them up 13% intraday, while Netflix shares fell 3% on dilution fears. Not included are: WBD’s cable networks (CNN, TNT, HGTV), which are to be spun-off as Discovery Global in Q3 2026, with the merger closing in 12-18 months subject to shareholder and regulatory approval. Netflix’s $59B debt financing (BNP, HSBC, Wells Fargo) and $5.8B breakup fee demonstrate commitment; WBD will have to pay $2.8B if the deal is cancelled.

Content Empire: Franchises and Firepower
The deal will expand Netflix’s library to: DC Comics (Batman, Superman), Harry Potter, The Lord of the Rings, Game of Thrones, Friends, The Big Bang Theory, Casablanca classics, as well as premium content from HBO. Co-CEO Ted Sarandos described it as “bringing together the world’s most impactful stories,” which will reduce reliance on licensed content amid a battle to drive subscriber growth with Disney+, Amazon Prime. WBD CEO David Zaslav echoed the same sentiment: This ensures “impactful stories for generations.”

Analysts are eyeing synergy: unified Netflix-HBO Max app, ad-tier bundling, premium flows that would reduce “hit-rate risk,” according to MKI Global – potentially adding 50M subscribers through HBO’s 100M+ footprint. Benefit in theaters too: Warner’s 2025 slate (Superman, Batman sequels) strengthens Netflix’s hybrid model after *Rebel Moon* experiment.

Regulatory hurdles and turmoil in Hollywood
Antitrust threats: FTC/EU investigation looms over monopoly risks, price gouging and pressure on indie films – Cinema United calls it “a threat to global exhibition”, fearing Netflix’s day-and-date streaming will hurt theaters. Paramount’s Ellison lamented the loss; Comcast is moving elsewhere. If approved, Netflix – with a $424B market cap – will command unmatched scale, surpassing even Disney’s $170B.

This is not a takeover; This is to rule. From changing the DVD to becoming the king of studios, Netflix is ​​rewriting the story of Tinseltown – content kings collide, but what will antitrust cost?