Warner Bros. knew what it was saying when it commented that it wanted to have a buyer before the end of 2025. After a few weeks in which it seemed that Paramount was going to take the lead, it was finally Netflix, which has acquired the oldest film production company, although we will have to wait: for now, Warner has to conclude its global networks division (which includes CNN and Discovery) in a new company.
82.7 billion dollars. Netflix has closed the largest acquisition in its history and one of the most significant operations in the entertainment industry: the purchase of the centenary Warner Bros studio, along with the streaming platform HBO Maxin a deal valued at $82.7 billion in terms of total enterprise value. Warner Bros. Discovery shareholders will receive compensation of $27.75 for each title they own, structured as a payment of $23.25 in cash plus $4,501 in Netflix shares.
Organic growth is over. The transaction represents a radical shift in corporate strategy for Netflix, which for two decades had shunned large acquisitions in favor of organic growth. Just two months ago, co-CEO Greg Peters had criticized media megamergers. The agreement concludes an intense bidding war of three rounds in which Netflix beat competitors such as Paramount-Skydance (which sought to buy all of WBD) and Comcast (interested only in the streaming and studio assets). Netflix’s final proposal includes a breakup penalty clause of $5 billion in case regulators block the operation.
Just yesterday, Paramount-Skydance accused to the process having been “rigged” with a “predetermined outcome” that favored a single bidder. Netflix’s victory is partially attributed to the close professional relationship between David Zaslav and Ted Sarandos.
It still remains. The final closure will not occur until Warner Bros. Discovery completes the separation of its traditional networks division (which includes CNN, TNT Sports, Discovery Channel, TBS and the European broadcast television channels, in addition to the Discovery+ service and Bleacher Report) into a new independent company called Discovery Global. This process is scheduled to end in the third quarter of 2026, at which point Netflix will be able to take effective control of the acquired assets, according to the official calendar broadcast by Netflix itself.
What does Netflix have now? With this operation, Netflix will incorporate into its corporate structure the production companies Warner Bros. Motion Picture Group and Warner Bros. Television, DC Studios (responsible for the superhero franchises that rival Marvel and that have just experienced a welcome resurrection), the entire HBO programming including emblematic series such as ‘Game of Thrones’ or the future reinvention of ‘Harry Potter’, and a historical library that includes approximately 12,500 feature films and 2,400 series.
All of this, of course, in addition to universally famous franchises and IPs like those mentioned, FriendsThe Lord of the Rings or the entire Looney Tunes catalog, among other things Hanna-Barbera. The deal also gives Netflix physical production infrastructure, including Warner’s legendary Burbank studios in California.
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