Streaming giant Netflix announced it will acquire Warner Bros. Discovery’s studio and streaming business in a cash-and-stock deal valued at $82.7 billion, including debt.
The transaction is set to close after Warner Bros. Discovery spins off its cable unit, expected by the third quarter of 2026, creating a separate company for channels like CNN, TNT, and Discovery.
Netflix, already the world’s largest paid streaming service with over 300 million subscribers, said the acquisition would strengthen its content portfolio and industry influence.
“In a world where people have so many choices, more choices than ever on how to spend their time, we can’t stand still,” co-CEO Ted Sarandos said.
“We need to keep innovating and investing in stories that matter most to audiences, and that’s what this deal is all about. The combination of Netflix and Warner Bros. creates a better Netflix for the long run.”
The deal, which follows a bidding contest with Comcast and Paramount, could reshape Hollywood by increasing Netflix’s leverage over theater owners and unions, and potentially prompting smaller companies to consolidate.
The move also signals further tech dominance in Hollywood, similar to Amazon’s 2022 acquisition of MGM for $8.5 billion.