Netflix to acquire Warner Bros’ studio & streaming division for $72 billion, WBD stock jumps 3.10%

Netflix Inc. said on Friday it has agreed to acquire the film and television studios, alongside the streaming division, of Warner Bros Discovery (WBD) in a deal worth $72 billion. This monumental purchase is set to transfer stewardship of one of the film industry’s oldest and most prestigious properties to the modern streaming powerhouse, fundamentally reshaping the global media landscape.

The acquisition, made public on Friday, will consolidate two titans of cinematic and episodic content production under a single corporate umbrella. Beyond its heritage TV and motion picture operations, Warner controls key assets like the premium streaming service HBO Max and DC Studios. For its part, Netflix has built its dominance on globally recognized original content, including hits such as “Squid Game” and “Stranger Things,” becoming synonymous with on-demand entertainment.

Market Reaction

Following the deal announcement, the market showed a split reaction. Shares in Netflix experienced a slight decline of 0.20%, while Warner Bros Discovery stock saw a surge of 3.10%.

The Massive Deal

This deal brings an end to a weeks-long and intense bidding contest. Netflix ultimately took the lead with an offer of nearly $28 per share, eclipsing a rival bid of approximately $24 per share from Paramount Skydance, which had proposed buying the entirety of WBD, including the cable TV entities planned for a separate spinoff.

The cash and stock compensation package values the deal at $27.75 per Warner share, with a total enterprise value of approximately $82.7 billion (equity value of $72.0 billion).

The completion of the deal is anticipated in the third quarter of 2026, contingent upon Warner successfully separating Discovery Global into a new publicly-traded entity.

“Our mission has always been to entertain the world,” said Ted Sarandos, co-CEO of Netflix. “By combining Warner Bros.’ incredible library of shows and movies — from timeless classics like Casablanca and Citizen Kane to modern favorites like Harry Potter and Friends—with our culture-defining titles like Stranger Things, KPop Demon Hunters and Squid Game, we'll be able to do that even better. Together, we can give audiences more of what they love and help define the next century of storytelling.”

Deal Termination Clause

To mitigate risks, the agreement includes substantial termination clauses, as detailed in a Securities and Exchange Commission (SEC) filing. Should Netflix choose to walk away from the deal under certain conditions, it would owe Warner Bros Discovery a cancellation penalty of $5.8 billion. Conversely, if WBD terminates the deal, it would be liable to pay Netflix a fee of $2.8 billion.

To fund the cash component of the purchase, Netflix has secured a Commitment Letter for up to $59 billion in senior unsecured bridge term loans.