Netflix to buy Warner Bros Discovery: $72 billion deal; streaming shifts worldwide

TOI GLOBAL DESK | TOI GLOBAL | Dec 05, 2025, 22:26 IST

Netflix to acquire Warner Bros., HBO Max in USD 82.7 billion deal

Netflix’s $72 billion deal to buy Warner Bros. Discovery pushes WBD shares higher and sets up one of the biggest media mergers in years. The agreement gives Netflix access to major franchises and the Warner Bros. studio, but the acquisition will close only after WBD completes its Discovery Global spinoff in 2026.

WBD shares rise

Warner Bros. Discovery (WBD) shares gained on Friday after Netflix confirmed that it will acquire the company for $72 billion. The deal ends months of speculation and comes after Netflix outbid Paramount Skydance and Comcast. Analysts say this is one of the largest mergers the entertainment industry has seen in many years. The offer values Warner Bros. Discovery at about $82.7 billion, including debt. Under the agreement, Netflix will pay $27.75 per share. Shareholders will receive $23.25 in cash and $4.50 in Netflix stock. WBD shares had already been rising because investors expected a takeover, and the official announcement pushed them even higher. Shares of Netflix and Paramount fell slightly in early trading.

Netflix will gain vast access

The merger will give Netflix access to a huge catalog of films and shows. This includes the Warner Bros. movie studio and HBO Max’s hit franchises such as Harry Potter, Game of Thrones, and The Sopranos. The large library is expected to strengthen Netflix’s position in a crowded streaming market. Industry experts say this deal could be a turning point. As competition increases, companies are looking for ways to grow their content collections without raising costs too sharply. By bringing two major entertainment houses together, Netflix aims to give its subscribers more choices and keep its lead over rivals.

Discovery Global spinoff

Before the merger takes place, WBD will go ahead with its planned spinoff of Discovery Global. This division includes well-known networks such as CNN and TNT. The spinoff is set for the third quarter of 2026. Once that process is complete, the acquisition is expected to close within 12 to 18 months. Netflix leaders say the merger will help the company grow for decades. Co-CEO Greg Peters said the new content will help Netflix reach more viewers around the world. Co-CEO Ted Sarandos said combining classic films like Casablanca and Citizen Kane with Netflix hits like Stranger Things and Squid Game will help build “the next century of storytelling.”