Netflix announced on Friday that it has reached a definitive agreement to acquire Warner Bros. Discovery (WBD) in a transaction valued at $27.75 per share, or approximately $82.7 billion in total enterprise value. The decision concludes one of the most competitive auctions in recent media history, with bids previously submitted by Paramount Skydance and Comcast.
Under the terms, Netflix will acquire WBD’s iconic Warner Bros. film studio and its streaming platform HBO Max. WBD will continue with its planned separation of its traditional TV networks – including CNN and TNT – which will be spun out into a standalone company before the deal closes.
The acquisition is expected to be completed no earlier than the third quarter of 2026, pending regulatory approval and the completion of WBD’s network spinoff.
Shares of Netflix slipped about 3% in premarket trading following the announcement. WBD shares edged down 1%, while Paramount Skydance declined approximately 2%. Comcast shares were flat.
Why Netflix Is Making Its Biggest Bet Yet
The acquisition marks a pivotal expansion for Netflix as it looks to reinforce its already dominant position in global streaming and secure one of the industry’s richest content libraries. The Warner Bros. studio brings with it decades of film franchises and production capabilities, while HBO Max offers a catalog of premium series and a strong brand identity.
As previously covered, the battle for streaming market share has intensified as consolidation accelerates. Netflix’s move signals confidence in its financial strength and its ability to integrate large-scale media operations – something it has never attempted at this magnitude.
The bidding process itself unfolded rapidly. Paramount Skydance and Comcast were initially considered frontrunners, but Netflix ultimately delivered what insiders described as the “cleanest” and most compelling offer, combining liquidity with strategic alignment.
The deal structure – cash and stock – also underscores Netflix’s willingness to use its market valuation as leverage to secure transformative assets.
What the Acquisition Means for Streaming and Investors
If approved, the merger would create the most expansive content powerhouse in entertainment, positioning Netflix as both a dominant streamer and a major Hollywood studio operator. The addition of Warner Bros. and HBO Max dramatically expands Netflix’s content pipeline and intellectual property portfolio.
However, the transaction also raises questions about regulatory scrutiny. U.S. antitrust authorities have increasingly focused on market concentration in streaming and entertainment distribution. The companies indicated that the deal timeline anticipates a thorough review.
For investors, the acquisition introduces both upside potential – through expanded production capacity and subscription growth – and execution risks. Integrating a legacy studio, a major streaming platform, and a global workforce will require significant operational planning.
Market reaction to the announcement was cautious, with shares across the media sector mostly lower in premarket trading. Investors may be weighing the long-term strategic value of the acquisition against concerns about debt financing, integration complexity, and regulatory headwinds.
As the industry shifts toward fewer, larger players, Netflix’s move signals that the race for premium content is entering a new phase of consolidation and competitive intensity.
