The competitive bidding has concluded, and Netflix has emerged as the victor.
After engaging in discussions with Paramount Skydance and Comcast, Warner Bros. Discovery (WBD) has opted to transfer its streaming and film studio assets to Netflix. If sanctioned, this agreement is poised to reshape the media environment and create lasting impacts within Hollywood.
$72 billion takeover
Netflix will provide an equity value of $72 billion, equating to an overall enterprise valuation of roughly $82.7 billion, for Warner Bros. According to NBC News, the total market valuation of WBD stands at $60 billion.
The takeover will occur following WBD’s finalization of the division of its streaming and studio operations, which encompasses its film and television archives, the HBO network, and additional channels like CNN and TBS, into distinct entities (Warner Bros. and Discovery Global, respectively). The separation of WBD is projected to conclude in the third quarter of 2026.
Moreover, Netflix’s acquisition is contingent on regulatory endorsements, WBD shareholder support, and other “standard final conditions.”
Netflix anticipates that this acquisition will yield an increase in subscribers, enhanced engagement, and “at least $2–3 billion in annual cost reductions by the third year,” according to its statement.
Netflix co-CEO Greg Peters mentioned in a press release that Netflix intends to leverage its international presence and business strategy to deliver WB content to “a wider audience.”
The statement did not clarify the implications for the existing WBD workforce, including WBD’s current president and CEO, David Zaslav. Gunnar Wiedenfels, who serves as CFO of WBD, is anticipated to become the CEO of Discovery Global after the WBD division.
Netflix to acquire HBO Max
Netflix will need to navigate regulatory challenges to finalize this agreement, transforming it from a streaming leader into an entertainment powerhouse. If successful, the globe’s largest streaming platform by subscribers (301.63 million as of January) will possess its third biggest competitor (WBD boasts 128 million streaming subscribers, predominantly HBO Max users).
