Netflix and Warner Bros. Discovery (WBD) have just dropped a bombshell—they’ve sealed a definitive agreement that will see Netflix acquire Warner Bros., including its iconic film and TV studios, HBO, and HBO Max.
First, let’s break down the nuts and bolts: WBD will split off its assets by Q3 2026, with the Warner Bros. segment (combining the film studio and streaming business) changing hands in a deal valued at $82.7 billion enterprise value and $72 billion in equity value. Netflix co-CEO Ted Sarandos summed up the game-changing move perfectly: “Our mission has always been to bring entertainment to global audiences. By combining Warner Bros.’ incredible library—from timeless classics like Casablanca and Citizen Kane to modern hits such as Harry Potter and Friends—with our own culture-defining content like Stranger Things, K-Pop: The Secret Life of Witches, and Squid Game, we’ll do that even better. Together, we’ll deliver more of what audiences love and shape the art of storytelling for the next century.”
But this acquisition didn’t come without drama. Paramount Skydance, which lost out on its bid for Warner Bros., has launched a whopping $108.4 billion hostile takeover attempt. Documents reveal just how aggressive their pursuit was: over the past three months, Paramount Skydance CEO David Ellison pulled out all the stops to win over WBD CEO David Zaslav—dining together, offering job commitments, and enlisting others to lobby on his behalf. But recently, Ellison was left hanging when Zaslav went radio silent, leaving his messages read but unanswered. Hours later, the world learned why: Netflix had announced its takeover of Warner Bros.
There are still hurdles to clear, though. The deal needs regulatory approval and antitrust scrutiny. If it falls through for these reasons, Netflix will pay WBD a $5 billion breakup fee. To guard against last-minute shifts, WBD and Netflix also agreed that if shareholders reject Netflix’s offer for a higher bid from Paramount Skydance, WBD will owe Netflix a $2.8 billion termination penalty.
Insiders say Warner Bros. and Zaslav favored Netflix for good reason: the streamer boasts a strong balance sheet, steady stock performance, and a proven business model built on original content—something that gave it a clear edge in the bidding war.
What does this mean for fans? Netflix has pledged to keep Warner Bros.’ current operations and theatrical release strategies intact. But don’t expect HBO Max to stick around as a standalone app. The real win for subscribers? A massive boost to Netflix’s library, with Warner Bros.’ extensive content catalog and HBO/HBO Max’s premium shows all under one roof.
As a fun side note, Bloomberg reports that before setting its sights on Warner Bros., Netflix had floated the idea of acquiring Disney—now that’s a “what if” that has Hollywood buzzing.
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