Netflix Makes Its Largest Move Ever
Netflix announced Friday it reached an agreement to buy key assets from Warner Bros. Discovery (WBD) — namely the iconic Warner Bros. film studio and the HBO Max streaming platform. The decision closes a bidding process that had drawn intense interest from Paramount Skydance and Comcast, marking one of the biggest media transactions in decades.
The purchase price — $27.75 per WBD share — values the deal at $72 billion, with an enterprise value of roughly $82.7 billion.
For Netflix, a company historically known for building rather than buying, the acquisition represents a strategic leap. It absorbs one of Hollywood’s most storied content libraries, from Harry Potter to DC, and the prestige HBO catalog spanning The Sopranos, Game of Thrones, and more.
What Happens to the Rest of Warner Bros. Discovery?
WBD will move ahead with its previously announced plan to spin out its cable networks — including TNT, TBS, CNN, Food Network, HGTV and more — into a separate company called Discovery Global.
The Netflix acquisition will only close after that separation is completed, currently projected for Q3 2026.
Once closed, WBD shareholders will receive:
- $23.25 in cash
- $4.50 in Netflix common stock
Netflix also agreed to a $5.8B reverse breakup fee if regulators block the deal. If WBD exits the agreement to pursue another merger, it must pay Netflix $2.8B.
Both boards unanimously approved the transaction.
Paramount Fought Hard — but Lost
Paramount Skydance, newly merged and backed by significant capital, submitted three separate bids for Warner Bros. Discovery before the official sale process even began.
Its final bid:
- $30 per share, all cash
- $5B breakup fee if regulators rejected the deal
Despite the higher offer, the sales process pivoted toward Netflix after its initial proposal gained traction early.
Paramount later questioned whether the process was “fair and adequate,” suggesting WBD favored Netflix throughout — an accusation that underscores the strategic value of the assets.
Regulatory Scrutiny Inevitable
Combined, the two companies represent one of the world’s most powerful streaming ecosystems:
- Netflix: 300M+ global subscribers
- WBD: 128M global subscribers
The deal places a massive volume of premium content under one roof, raising expected antitrust reviews around:
- Market concentration in streaming
- Vertical integration of studio + distributor
- Competition for licensing and talent
Netflix is betting the globalized nature of streaming will help the acquisition clear regulatory hurdles.
WSA Take
This is the most consequential entertainment deal since Disney–Fox. It reshapes the competitive landscape, consolidates premium storytelling under Netflix, and signals the next phase of streaming: scale, IP dominance, and global reach.
For Warner Bros., the move untangles a complicated balance sheet and creates a clearer future for its remaining networks. For Netflix, it’s a once-in-a-generation chance to lock in legacy IP and accelerate its evolution from disruptor to industry anchor.
Read our recent coverage on Meta’s Major Cuts to Metaverse Budget.
Explore more market insights on the WallStreetAccess homepage.
Disclaimer
WallStAccess does not work with or receive compensation from any companies mentioned. This content is for informational and educational purposes only and should not be considered financial advice. Always conduct independent research before investing.
