Netflix is set to make the largest acquisition in its history, announcing Friday that it will buy Warner Bros. Discovery’s film studio and streaming service HBO Max in a deal valued at $72 billion, ending a high-stakes bidding battle with Paramount, Skydance, and Comcast.
The agreement, composed of cash and stock, values Warner Bros. Discovery (WBD) at $27.75 per share, giving the transaction an enterprise value of roughly $82.7 billion. Each WBD shareholder will receive $23.25 in cash and $4.50 in Netflix stock once the deal closes, which is expected to happen in 12 to 18 months following the planned separation of WBD’s TV networks—including TNT and CNN—into a new company called Discovery Global.
Under the deal, Netflix will take control of the iconic Warner Bros. film studio, home to classics such as The Wizard of Oz, the Harry Potter films, and DC Comics franchises, as well as HBO Max’s acclaimed library, which includes Game of Thrones and The Sopranos. The purchase brings together the world’s largest streaming service and one of Hollywood’s most historic studios, marking a major consolidation milestone in an industry already reshaped by digital transformation.
Netflix executives described the acquisition as a rare opportunity to expand its global entertainment reach. The company surpassed 300 million subscribers at the end of 2024, while WBD reported 128 million subscribers as of September 2025. The merger may invite regulatory scrutiny due to the combined companies’ scale, an issue raised by Paramount in the final days of the bidding process.
Paramount Skydance had submitted multiple bids for all of WBD’s assets, ultimately offering $30 per share in cash with a multibillion-dollar breakup fee if regulators rejected the deal. Paramount later accused WBD of favoring Netflix, arguing that the process lacked fairness, according to correspondence reported this week.
Both companies’ boards unanimously approved the agreement, which must still pass regulatory and shareholder approval. Netflix agreed to pay a $5.8 billion reverse breakup fee if the deal fails, while WBD would owe $2.8 billion for walking away to pursue another merger.
The acquisition is expected to reshape the streaming landscape, giving Netflix control of a vast archive of intellectual property alongside a major Hollywood studio—an unprecedented expansion for a company once known solely as a DVD-by-mail service.
Source: CNBC