Netflix to Acquire Warner Bros. Studios and Streaming Division in Landmark Deal
WASHINGTON – Netflix has emerged as the winning bidder to acquire Warner Bros. Discovery’s (WBD) studio assets and streaming division for nearly $28 per share, surpassing a $24-per-share offer from Paramount Skydance, sources confirmed Thursday. The deal, expected to close within 12 to 18 months, will significantly expand Netflix’s content library, though it will not include WBD’s cable TV assets.
The acquisition marks a major shift in the media landscape, bringing iconic franchises like Harry Potter and DC Comics under the Netflix umbrella. Warner bros. Discovery is spinning off its global networks unit, Discovery global – which includes CNN, TBS, and TNN – into a separate publicly traded company, anticipated in the third quarter of 2026, prior to the deal’s completion. This separation allows Netflix to focus on the studio and streaming components of WBD.
Netflix will gain access to Warner Bros.’ film and television production studios, and also WBD’s streaming service, HBO Max, which boasts nearly 130 million subscribers.However, the deal specifically excludes the cable networks slated for spinoff.
The agreement includes ample financial safeguards: Netflix has offered a $5.8 billion breakup fee should regulators block the acquisition, while Warner Bros. Discovery will pay Netflix $2.8 billion if it delays or terminates the deal.
Opposition to the deal has already surfaced. David Ellison, CEO of Paramount Skydance, recently met with Trump administration officials and lawmakers to argue against the acquisition, leveraging his father, Oracle CEO Larry Ellison’s, close ties to former President Trump.
The deal is anticipated to face rigorous antitrust scrutiny in both the U.S. and Europe, given Netflix’s position as the world’s largest streaming service. The acquisition of a major competitor like Warner Bros. Discovery raises concerns about market dominance.
The path to this deal has been complex.AT&T initially acquired Warner Bros. through its 2018 merger with Time Warner. Subsequently, AT&T spun off WarnerMedia and merged it with Discovery in 2022.Warner Bros. Discovery then initiated a sale process in October 2025.
