Netflix just pulled off the biggest media acquisition in years, striking a $72 billion agreement to buy Warner Bros. Discovery’s entertainment assets — including HBO, HBO Max, and the storied Warner Bros. film and TV studios.
The total value of the transaction jumps to $82.7 billion once debt is included. The deal will take effect after WBD completes a planned spinoff of its Discovery Global unit into a separate public company, expected by Q3 2026.
“Together, we can give audiences more of what they love and help define the next century of storytelling,” Netflix co-CEO Ted Sarandos said Friday.
The blockbuster deal ends a fierce three-way battle between Netflix, Comcast, and Paramount, all of whom submitted sweetened bids this week. Netflix ultimately won out with a $27.75-per-share offer, sweetened with near-total cash backing — a move that signaled serious intent and put pressure on competitors.
Paramount didn’t take the loss lightly. In two sharply-worded letters to WBD’s board and CEO David Zaslav, Paramount’s legal team blasted the auction process as unfair and accused the company of favoring Netflix due to personal ties. One letter warned the deal “would likely never close” due to potential U.S. and international antitrust scrutiny. Another accused WBD of “abdicating its duties to stockholders.”
WBD fired back, saying it had “robustly complied” with its fiduciary obligations.
Insiders say Zaslav’s close friendship with Sarandos may have played a role behind the scenes, fueling speculation that Netflix had the inside track for weeks. Still, with the ink barely dry, the drama may not be over.
Paramount’s Ellison family-backed Skydance unit is expected to take its objections directly to WBD shareholders, arguing the Netflix tie-up faces steep regulatory headwinds. Sources told The Post that senior White House officials have already held meetings over antitrust concerns tied to the proposed merger.
Even some in Hollywood are raising alarms. A group of anonymous producers penned a letter to Congress on Thursday expressing “grave concerns” about Netflix’s control over theatrical releases, accusing the company of treating theaters as a threat to their streaming model.
Netflix pushed back Friday, insisting it will preserve — and even expand — theatrical releases under the Warner Bros. banner. That would mark a major shift for the streaming powerhouse, long criticized for undercutting the box office.
To fend off antitrust scrutiny, Netflix is reportedly preparing to argue that the merger won’t stifle competition or harm consumers. In fact, the company may pitch a bundled Netflix-HBO Max offering as a cost-saver for customers — a key angle as regulators weigh the impact.
The acquisition follows WBD’s announcement in October that it was exploring a sale. The company rejected a $24-per-share bid from Paramount earlier this fall before asking bidders to submit final offers by December 1.
If the Netflix deal receives final approval, it will follow the controversial $8.4 billion Skydance-Paramount merger from July — a deal that only cleared after Skydance pledged to scrap DEI policies and install a media bias watchdog at CBS News.
With this new merger, Netflix isn’t just tightening its grip on the streaming market. It’s taking direct aim at Hollywood’s traditional gatekeepers — and setting the stage for a seismic reshaping of the entertainment industry.
The post Netflix Clinches $72B Warner Bros. Deal appeared first on Real News Now.
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