Netflix just dropped the biggest entertainment bomb of the year. The company announced that it is buying Warner Bros. Discovery for a massive $82.7 billion, instantly scooping up Warner Bros., HBO, HBO Max, and some of the most iconic franchises ever created.
That includes DC, Game of Thrones, Harry Potter, Looney Tunes, and the entire Warner Bros. film library.
Netflix basically walked into Hollywood, grabbed half the shelf, and said thanks.
This deal is a mix of cash and stock valued at 72 billion in equity and 82.7 billion including debt. Once it closes, Netflix becomes the home for HBO classics like The Sopranos, Succession, and The Wire. The kind of shows that practically built the concept of prestige TV.
Netflix says it will keep Warner Bros. films in theaters, keep HBO Max running as its own service for now, and start blending HBO and Warner Bros. content into Netflix’s own catalog. Translation: Netflix menus are about to get very crowded.
Warner Bros. Discovery shareholders will get $23.25 in cash and $4.50 in Netflix stock per share. The deal still needs regulatory approval and requires WBD to complete its previously planned split of Discovery Global into a separate company in Q3 2026. If everything goes smoothly, the acquisition could take 12 to 18 months.
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There had been rumors that Apple wanted access to Warner Bros. Discovery’s library for Apple TV. That dream is probably over now. Apple TV will be competing directly with a Netflix that just got a whole lot stronger.
The streaming wars were already messy. This deal turns the map upside down.
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