LOS ANGELES (Realist English). Netflix announced Friday that it has struck a landmark agreement to acquire key assets of Warner Bros. Discovery (WBD), bringing a swift end to a tense bidding process involving Paramount–Skydance and Comcast.
The cash-and-stock deal values WBD at $27.75 per share, giving the transaction an equity value of $72 billion and a total enterprise value of roughly $82.7 billion, the companies said.
Under the agreement, Netflix will take control of the Warner Bros. film studio — home to classics such as The Wizard of Oz, the Harry Potter franchise and the DC universe — as well as the HBO Max streaming service, featuring global hits like The Sopranos and Game of Thrones.
Warner Bros. Discovery will proceed with its planned spin-off of Discovery Global, which includes cable networks such as TNT and CNN.
“A rare opportunity,” says Sarandos
Netflix co-CEO Ted Sarandos acknowledged the surprise many felt at the move, noting Netflix’s historical preference for building rather than buying.
“We already have incredible shows and movies and a great business model,” Sarandos said on an investor call. “But this is a rare opportunity — one that will help us entertain the world and bring people together through great stories.”
Netflix’s initial offer of $27 per share reportedly outbid Paramount’s early proposal and shifted negotiations firmly in Netflix’s favor.
Deal expected to close in 2026
The acquisition is expected to close 12–18 months after WBD completes the separation of its TV networks, now anticipated in the third quarter of 2026.
Each WBD shareholder will receive $23.25 in cash and $4.50 in Netflix stock for every WBD share they own.
Both companies’ boards have unanimously approved the agreement, which still requires regulatory clearance and a shareholder vote.
Netflix has agreed to pay a $5.8bn reverse breakup fee if the transaction is blocked. If WBD walks away to pursue another merger, it must pay Netflix $2.8bn, according to SEC filings.
Paramount cries foul as it loses out
The merger is likely to draw antitrust scrutiny, given the companies’ enormous streaming footprints. Netflix last reported more than 300 million global subscribers, while WBD has 128 million.
Paramount, which submitted three bids before the formal sale process began, argued earlier this week that WBD was favoring Netflix and undermining a fair bidding process.
Paramount’s final bid — $30 per share in cash, with a $5bn breakup fee if regulators rejected the merger — arrived Thursday evening, according to people familiar with the negotiations.
Paramount’s attorneys accused WBD of “abandoning the semblance and reality of a fair transaction process” and “pursuing a predetermined outcome that favors a single bidder.”
Despite the objections, Netflix prevailed, securing one of the most significant acquisitions in modern media history — and reshaping the future landscape of global entertainment.