Netflix To Acquire Warner Bros Discovery For $72 Billion: Streaming Giant Wins Bidding War

Netflix has finalized a landmark $72 billion deal to acquire Warner Bros Discovery's TV and film studios along with its streaming division, marking one of the biggest shake-ups in Hollywood's history. The agreement, announced on Friday, concludes a fiercely competitive bidding war in which Netflix outpaced Paramount Skydance with an offer of nearly $28 per share, surpassing Paramount's nearly $24-a-share proposal for the entire Warner Bros Discovery entity, including its cable TV assets planned for a spinoff.

Warner Bros Discovery closed at $24.5 per share on Thursday, with a total market valuation of $61 billion. The acquisition grants Netflix control over iconic franchises such as "Game of Thrones," "DC Comics," and "Harry Potter," shifting the balance of power even further toward the streaming giant. The move strengthens Netflix's position against competitors like Disney and the Ellison family-backed Paramount, especially as it expands into gaming and explores new revenue streams following its successful password-sharing crackdown.

Industry analysts suggest that Netflix aims to secure long-term rights to blockbuster content and reduce dependence on external studios. However, the deal is expected to undergo intense antitrust scrutiny in both the U.S. and Europe, as it gives the world's largest streaming platform ownership of a major rival with nearly 130 million streaming subscribers, including HBO Max.

Paramount, led by David Ellison, initially triggered the bidding war with unsolicited offers and earlier this week raised concerns about the fairness of the sale process, hinting at preferential treatment toward Netflix.

To counter fears of market consolidation, Netflix argued during negotiations that combining HBO Max with its own service could benefit consumers by lowering the cost of bundled offerings, Reuters reported Tuesday. Additionally, Netflix has assured Warner Bros Discovery that it will continue to release the studio's films in cinemas, attempting to alleviate industry concerns over the potential disappearance of another major theatrical film producer.