Netflix to acquire Warner Bros.’ studios and HBO Max in landmark $72 billion deal

Netflix (NFLX) is acceptable to get Warner Bros. Discovery's (WBD) workplace and streaming assets successful a $72 cardinal deal, positive debt, bringing Hollywood’s astir storied movie and TV workplace and the world’s largest streaming level unneurotic successful 1 of the biggest amusement deals successful history.

The companies announced Friday that they entered into a definitive agreement, taxable to regulatory approval, that volition springiness Netflix power of Warner Bros.’ movie and TV studios, arsenic good arsenic HBO and HBO Max.

The woody is acceptable to adjacent aft Warner Bros. Discovery completes its antecedently announced program to abstracted its Global Networks part into a standalone publically traded company.

Under that restructuring, expected successful summertime 2026, Netflix would instrumentality implicit the studios and streaming assets, portion the recently created Discovery Global entity would location CNN and WBD’s portfolio of cablegram networks.

Netflix shares fell implicit 4% connected the news, portion Warner Bros. Discovery saw humble gains successful aboriginal premarket trading.

Read much astir Netflix's and WBD's banal moves and today's marketplace action.

Once completed, the acquisition would harvester Warner Bros.’ century-long room and deed franchises — including “Harry Potter,” “DC,” “The Sopranos,” “Game of Thrones,” “Friends,” “The Big Bang Theory,” and “Casablanca” — with Netflix originals including “Stranger Things,” “Wednesday,” “Bridgerton,” and “Squid Game.”

Netflix said it intends to support Warner Bros.’ existent operations, including theatrical movie releases.

The determination is notable due to the fact that Netflix has historically been a builder, not a buyer. The streamer has ne'er executed a large acquisition and has leaned heavy into processing its ain intelligence property.

As of Q3, 63% of Netflix’s contented assets were originals, and nary azygous rubric represents much than 1% of full viewing, JPMorgan expert Doug Anmuth highlighted successful a caller note. It's a level of diversification that cushions Netflix from consolidation elsewhere successful the industry.

But the scenery is changing. With 3 subscale streamers — HBO Max, Paramount+, and Peacock — warring for relevance, analysts accidental the lone way to endurance is scale, and Netflix whitethorn beryllium seizing the accidental to forestall a rival from gaining Warner Bros.’ intelligence property.

“Our ngo has ever been to entertain the world,” Netflix co-CEO Ted Sarandos said successful a property release. “Together, we tin springiness audiences much of what they emotion and assistance specify the adjacent period of storytelling."

In the months starring up to Friday's announcement, Paramount (PSKY), Netflix, and Comcast (CMCSA) each submitted bids for WBD assets. Paramount adjacent challenged the fairness of WBD’s process successful a missive reviewed by CNBC earlier this week, an antithetic nationalist escalation that underscored however captious this woody was for the company’s future.