Popular streaming platform, Netflix has agreed to purchase the film and streaming assets of Warner Bros Discovery for $72 billion (£54 billion), the companies announced recently.
The streaming giant emerged as the successful bidder after competing with rivals Comcast and Paramount Skydance in a closely watched acquisition battle. Warner Bros Discovery brings to Netflix a deep portfolio of intellectual property, including the Harry Potter and Game of Thrones franchises, along with its flagship streaming service HBO Max and an extensive library of films and television shows.
In a joint statement, Netflix co-CEO Ted Sarandos said the company is “highly confident” it will secure regulatory approval and is moving “full speed” toward closing the deal, which must still be cleared by competition authorities in the United States and other jurisdictions.
“Warner Bros has defined the last century of entertainment, and together we can define the next one,” Sarandos said. “By combining Warner’s iconic library with our originals like Stranger Things, we can give audiences more of what they love and help define the next century of storytelling.”
Co-CEO Greg Peters acknowledged the strong consumer loyalty to the HBO brand but said it was “quite early to get into the specifics” about whether HBO Max will continue as a separate streaming service.
The merger is projected to generate between $2 billion and $3 billion in cost savings, largely by reducing redundancies in technology, support, and back-office operations.
The acquisition would significantly expand Netflix’s content offerings and competitive position at a time when the streaming industry faces pressure to consolidate. Should regulators approve the deal, the combined entity would become a dominant force in both film production and digital distribution, potentially accelerating the decline of traditional cable and broadcast television.
The announcement sent shockwaves through Hollywood, raising questions about future licensing arrangements, creative partnerships, and the balance of power in a rapidly consolidating media market.
