Overview
- Netflix and Warner Bros. Discovery signed a definitive agreement for Netflix to acquire the studios and HBO/HBO Max for about $72 billion in equity, valuing the deal at roughly $82.7 billion including debt.
- CNN, Discovery and other cable networks are excluded as WBD plans to spin them into a separate public company, Discovery Global, with the split targeted for Q3 2026 before the transaction can close.
- The acquisition requires shareholder and regulatory sign-offs, with the Department of Justice expected to conduct an intensive antitrust review and bipartisan lawmakers already voicing competition concerns.
- Theater owners and creative guilds including Cinema United, the WGA and the DGA criticized the plan over potential harm to exhibition, jobs and bargaining power, while some filmmakers objected to Netflix’s short theatrical windows.
- Netflix said it will maintain Warner Bros.’ operations and continue theatrical releases for studio films, projected $2–3 billion in annual cost savings by year three, beat bids from Paramount/Skydance and Comcast, and would oversee a combined audience topping roughly 420 million subscribers.