Netflix’s $72 Billion Power Play: The Streamer That Disrupted Hollywood Is Now Buying One of Its Crown Jewels

Netflix, the company that once broke Hollywood’s rules, is now preparing to own one of its oldest and most celebrated institutions. In a blockbuster move valued at $72 billion, the streaming giant has reached an agreement to acquire Warner Bros Discovery’s film studios, TV operations and streaming business. The deal marks one of the most dramatic shifts in modern entertainment history, handing Netflix the keys to franchises that helped shape global pop culture.

The agreement ends a tense bidding contest that played out over the past several weeks. Netflix ultimately surged ahead with an offer approaching twenty-eight dollars a share, surpassing the competing proposal from Paramount and Skydance, whose nearly twenty-four-dollar bid aimed to take over the entire Warner Bros Discovery empire, including the cable networks designated for separation. Warner Bros Discovery closed at $24.50 a share on Thursday, placing the company’s value at roughly sixty-one billion dollars before the announcement.

If approved, the deal would redraw the competitive map of the media world. It unites Netflix with the creative powerhouse behind universes such as Harry Potter, DC Comics and Game of Thrones—brands that have defined blockbuster storytelling for decades. For Netflix, which built its rise without major acquisitions or a deep archive of intellectual property, the takeover marks a strategic departure and dramatically strengthens its defense against rivals like Disney and the Ellison family–supported Paramount.

Netflix co-chief executive Ted Sarandos framed the merger as a moment to shape the next era of global entertainment. He said the two companies together could widen the possibilities for storytellers and expand what audiences experience on screen.

Industry analysts say the move is driven by Netflix’s desire to secure long-term ownership of content it can depend on, especially as it branches into gaming and explores new revenue opportunities after the momentum generated by its password-sharing crackdown. The company wants to rely less on external licensors, and Warner’s catalogue offers exactly the depth and scale it has lacked.

Such a consolidation, however, is almost certain to attract tough regulatory scrutiny. Combining the world’s largest streaming service with a rival that counts around one hundred thirty million subscribers and operates the HBO Max platform will trigger questions about consumer choice and marketplace dominance. Both U.S. and European regulators are expected to examine whether the deal could limit competition or raise barriers to entry for other studios and streaming platforms.

The bidding battle itself has been contentious. Paramount, which initiated the takeover race with multiple unsolicited offers, raised concerns in a formal letter earlier this week, suggesting the sale process had leaned unfairly in Netflix’s favor. Paramount has long maintained connections to political circles in Washington, and its objections could fuel additional evaluation of the deal.

In negotiations, Netflix has attempted to preempt antitrust questions by arguing that a combined Netflix–HBO Max service could actually reduce costs for consumers if bundled appropriately. Reports also indicate that Netflix has promised to continue releasing Warner Bros films theatrically, hoping to relieve fears that the acquisition would diminish one of the last major suppliers of movies for cinemas.

Market reaction to the announcement was mixed. Netflix shares slipped nearly three percent in premarket trading, while Paramount fell slightly more than two percent. Comcast, the third participant in the bidding war, showed little change.

The acquisition itself will be structured as a combination of cash and stock. Each Warner Bros Discovery shareholder is set to receive $23.25 in cash and roughly $4.50 in Netflix shares for every share held, resulting in a valuation of $27.75 a share, or $72 billion in total equity and $82.7 billion including debt obligations.

Before the merger closes, Warner Bros Discovery plans to spin off its global networks arm—Discovery Global—into a separate publicly traded entity. That process is expected to conclude in the third quarter of 2026, after which the Netflix transaction would be finalized.

Netflix anticipates that by the third year after closing, the merged company will generate between two and three billion dollars in annual cost efficiencies. For an industry already under pressure from rising production costs, subscription fatigue and shifting viewer behavior, the deal represents not just a consolidation but a major turning point in the ongoing struggle to define the future of entertainment.