Netflix agrees to buy Warner Bros. in a $72-billion deal that will transform Hollywood

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Netflix has successfully agreed to purchase Warner Bros. for $72 billion. The deal includes the Warner Bros. film and television studio, as well as the HBO Max and HBO streaming services.

Netflix and another company reached a major agreement early Friday. This deal will bring popular characters like Batman, Harry Potter, and Fred Flintstone to Netflix.

As a huge fan of both Netflix and classic movies, I was so excited to read Netflix’s statement! Ted Sarandos explained that their goal has always been to simply entertain people globally, and now, by adding Warner Bros.’ amazing collection – think iconic films like ‘Casablanca’ and ‘Citizen Kane,’ plus popular shows like ‘Harry Potter’ and ‘Friends’ – alongside their already incredible originals like ‘Stranger Things,’ ‘KPop Demon Hunters,’ and ‘Squid Game,’ they’re planning to do that even more effectively. It feels like a dream come true for anyone who loves watching shows and movies!

Netflix is buying Warner Bros. Discovery shares in a deal worth around $27.75 per share. In addition to the purchase price, Netflix will also be responsible for over $10 billion of Warner Bros. Discovery’s existing debt, bringing the total value of the deal to $82.7 billion.

The deal was finalized earlier this week after Netflix, Paramount, and Comcast all made official second-round bids. By Thursday, it became clear Netflix would win, especially after a final opportunity to improve their offer passed. Both Netflix and Warner Bros. Discovery’s boards gave their complete approval to the agreement.

Channels like CNN, TNT, and HGTV, which are currently owned by Warner, won’t be part of this agreement. Instead, they’ll become a separate, publicly owned company called Discovery Global, launching around the middle of 2026.

Experts who follow antitrust law expect challenges to Netflix’s plan to acquire HBO Max. With over 300 million subscribers already, combining with HBO Max would give Netflix more than 420 million – far exceeding the subscriber numbers of any other major streaming service.

For a long time, Netflix has focused on releasing films directly on its streaming service, rather than showing them in cinemas.

As a huge movie fan, I was really concerned to hear about this deal. It seems like it could seriously hurt movie theaters worldwide – Cinema United, which represents over 50,000 screens, put out a statement saying it’s an unprecedented threat to the whole industry, and they’re against it. It’s worrying to think about what this could mean for the future of going to the cinema.

Hollywood Inc.

According to The Wall Street Journal, Paramount, with backing from Larry Ellison, is planning a mostly cash offer to buy Warner Bros., the company behind CNN, HBO, and the famous Warner Bros. film and television studio.

Cinema United President Michael O’Leary warned that this acquisition will harm movie theaters of all sizes, both in the U.S. and internationally. He explained that Netflix’s business plan doesn’t prioritize showing films in theaters.

Netflix announced it will continue running Warner Bros., including releasing Warner Bros. movies in theaters.

The Directors Guild of America said the proposed combination “raises significant concerns.”

The Directors Guild of America believes a thriving and competitive industry, where creativity is valued and talented individuals are sought after, is crucial for protecting the careers and artistic rights of directors and their crews. They plan to discuss their concerns with Netflix and learn more about the company’s future plans.

Hollywood Inc.

Paramount claims Warner Bros. Discovery tried to sabotage its offer by influencing officials at the European Commission.

David Ellison, the 42-year-old heir to a technology fortune, is deeply disappointed by losing the auction. He had hoped to combine the famous film studios and HBO with numerous cable channels into a major entertainment company.

Just a month after acquiring Paramount, he turned his attention to Warner Bros., starting a bidding war with a series of unexpected offers in September and early October.

Hollywood Inc.

After working for many years to reach a leadership position, Zaslav is determined to show people he can succeed and revitalize the company following three difficult years marked by losses and budget cuts aimed at lowering its substantial debt.

Warner Bros. Discovery’s board didn’t accept Paramount’s offers because they considered them too small. As a result, in late October, they allowed other companies to make their own bids.

Comcast also entered the competition to buy Warner Bros.’ studios, HBO, and its streaming platform. Their plan was to combine their own NBCUniversal media properties with Warner Bros. to create a much larger entertainment company.

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2025-12-05 16:01