Netflix Acquires Warner Bros Discovery Studios & Streaming for $72B: A Hollywood Power Shift

Netflix Secures Warner Bros Discovery Studios & Streaming in Historic $72 Billion Deal

In a landmark move poised to reshape the global entertainment landscape, streaming titan Netflix has officially agreed to acquire Warner Bros Discovery's highly coveted television and film studios, along with its entire streaming division, in a deal valued at a staggering US$72 billion (S$93.2 billion).

This monumental acquisition, announced on December 5, 2025, positions Netflix to take control of some of Hollywood's most prestigious and historic assets. This marks a significant shift for a company that built its dominance largely through organic growth and original content, now making a colossal strategic acquisition to bolster its market position.

A New Era for Iconic Franchises

The acquisition brings a treasure trove of beloved franchises under the Netflix umbrella, including the global phenomena Game Of Thrones, the expansive DC Comics universe, and the enchanting Harry Potter saga. This strategic move is expected to fundamentally alter the power dynamics within Hollywood, further solidifying Netflix's position as a content powerhouse against traditional media giants and emerging competitors.

Bidding War and Financial Details Unveiled

The agreement follows an intense, weeks-long bidding war. Netflix ultimately secured the deal with a compelling offer of nearly US$28 per share, successfully outmaneuvering Paramount Skydance's competitive bid of approximately US$24 per share, which had encompassed the entirety of Warner Bros Discovery, including its cable TV assets slated for a separate spinoff. Warner Bros Discovery's shares closed at US$24.5 on December 4, valuing the company at US$61 billion prior to the announcement.

Under the terms of the deal, each Warner Bros Discovery shareholder is slated to receive US$23.25 in cash and approximately US$4.50 in Netflix stock per share, bringing the total per-share valuation to US$27.75. The total enterprise value of the acquisition, including debt, is estimated at US$82.7 billion. Netflix anticipates generating between US$2 billion and US$3 billion in annual cost savings within three years of the deal's closure.

The transaction is projected to finalize in the third quarter of 2026, subsequent to Warner Bros Discovery spinning off its global networks unit, Discovery Global, into an independent publicly traded entity.

Strategic Imperatives and Market Reaction

Netflix co-chief executive officer Ted Sarandos articulated the strategic vision behind the acquisition, stating, "Together, we can give audiences more of what they love and help define the next century of storytelling." Analysts suggest that Netflix's drive for this acquisition stems from a desire to secure long-term rights to blockbuster shows and films, thereby reducing its reliance on external studios. This aligns with its broader strategy to expand into gaming and explore new growth avenues, building on the success of its recent password-sharing crackdown.

Despite the strategic benefits, the deal has already sparked significant discussion and market reactions. Netflix shares saw a nearly 3 percent decline in premarket trading, while Paramount experienced a 2.2 percent drop. Comcast, another interested party, showed little change.

Antitrust Concerns and Reassurances

The scale of this merger is expected to attract rigorous antitrust scrutiny from regulatory bodies in both Europe and the United States. Critics argue that consolidating the world's largest streaming service with a rival like HBO Max, which boasts nearly 130 million subscribers, could lead to excessive market concentration.

Adding to the complexity, Paramount, led by David Ellison and known for its ties to the Trump administration, previously questioned the sale process, alleging preferential treatment for Netflix in a letter earlier this week. To address potential regulatory and industry concerns, Netflix reportedly presented arguments during deal talks that a combined streaming offering with HBO Max could benefit consumers through lower bundled costs, as reported by Reuters on December 2. Furthermore, media reports indicate that Netflix has committed to continuing the studio's film releases in cinemas, aiming to alleviate fears that the deal would diminish the number of theatrical films available.