The streaming giant emerged as the successful bidder for the warner bros ahead of rivals Comcast and Paramount Skydance after a prolonged battle.
The takeover is set to create a new giant in the entertainment industry but the deal still has to be approved by federal regulators.
According to NBC News. If federal regulators sign off, the acquisition would merge the world’s biggest streaming platform with a legendary 102-year-old studio, creating one of the most powerful entertainment companies in modern history.
Warner Bros.’ holdings include HBO, the Max streaming service, and franchises like “Harry Potter,” while Netflix boasts global hits such as “Stranger Things” and “Squid Game,” with more than 300 million paid subscribers in over 190 countries.
Netflix co-CEO Ted Sarandos said in a statement that the companies’ combined libraries from classics like “Casablanca” and “Citizen Kane” to contemporary juggernauts like “Friends” and “Harry Potter,” alongside Netflix originals such as “KPop Demon Hunters” would help the streamer fulfill its mission to “entertain the world.”
Sarandos added that the partnership could shape “the next century of storytelling.”
The takeover would solidify Netflix’s dominance as Hollywood increasingly pivots from theatrical releases to digital distribution.
The deal also grants Netflix control over valuable intellectual property, including DC superheroes like Batman and Superman, the “Game of Thrones” universe, and an expansive archive spanning cinematic history.
To ease concerns within the film making community, Netflix reportedly pledged to continue releasing Warner Bros. films in traditional theaters, though many directors remain wary of Netflix’s limited theatrical strategy.
The companies said Friday that the transaction a combination of cash and stock values Warner Bros. Discovery at $27.75 per share, with an enterprise value of $82.7 billion and an equity value of $72 billion when factoring in debt.
Notably, Netflix is offering $72 billion for Warner’s streaming and HBO divisions alone, surpassing Warner Bros. Discovery’s full market cap of $60 billion as of Thursday.
To finance the cash portion, Netflix plans to secure a $59 billion bridge loan from three major banks.
Warner Bros. Discovery, burdened by substantial debt and lagging streaming growth, began exploring a sale last fall. Potential buyers included Paramount’s Skydance and Comcast, which owns NBCUniversal.
CEO David Zaslav said the merger brings together “two of the greatest storytelling companies” and ensures Warner Bros.’ legacy of culturally defining entertainment will continue. A source familiar with the situation said Zaslav would not remain with the combined company if the acquisition is completed.
The deal excludes Warner-owned cable networks such as CNN, TNT and TBS.