Netflix buys Warner Bros in historic $72bn power play

Netflix has agreed to acquire the film and streaming operations of Warner Bros Discovery for $72 billion (≈ ₹6.48 lakh crore), marking one of the most significant shake-ups in modern Hollywood. Warner Bros, one of Hollywood’s oldest and most influential studios, is known for its iconic films, global franchises, and century-long legacy in entertainment. Netflix outbid Comcast and Paramount-Skydance after months of negotiations to secure the deal.

The acquisition includes Warner Bros’ blockbuster franchises such as Harry Potter and Game of Thrones , as well as the streaming service HBO Max. If approved by regulators, the merger will create a powerful global entertainment entity combining Netflix’s streaming dominance with Warner Bros’ vast content library.

Netflix co-chief executive Ted Sarandos said the company was “highly confident” of regulatory approval and was already moving “full speed” toward integration. He added that combining Netflix’s breakout hits like Stranger Things with Warner Bros’ legendary storytelling heritage would “define the next century of entertainment.”

Co-chief executive Greg Peters said the HBO brand would remain important to consumers but declined to reveal details of future streaming bundles or platform integrations.

Netflix expects annual savings of $2–3 billion (₹18,000–27,000 crore) by eliminating overlapping technology and support functions. The company confirmed that Warner Bros films will continue to receive theatrical releases and that the studio will remain free to produce content for third parties.

Warner Bros CEO David Zaslav said the deal unites “two of the greatest storytelling companies in the world,” ensuring their stories “continue to resonate for generations.”

The agreement values Warner Bros at an enterprise value of $82.7 billion (≈ ₹7.44 lakh crore), including debt, with shareholders set to receive $27.75 per share. Boards of both companies have approved the deal unanimously.

However, Hollywood unions and industry groups have criticised the acquisition. The Writers Guild of America warned it would “eliminate jobs, reduce wages, and raise prices for consumers.” Cinema United CEO Michael O’Leary said the deal posed an “unprecedented threat” to cinemas worldwide, affecting major chains and small-town theatres alike.

Analysts say the deal underscores Netflix’s ambition to solidify its position as the world’s leading streaming platform. Paolo Pescatore of PP Foresight called it “a huge statement of intent,” while cautioning that merging two companies of such scale will be complex.

Regulators are expected to scrutinize potential impacts on competition, pricing, and consumer choice. Experts predict the combined company may reduce film and television output and potentially increase subscription costs.

The takeover will be completed after Warner Bros finalises its split into two entities—its streaming-and-studios division to be acquired by Netflix, and its global networks division, soon to be renamed Discovery Global, which will retain channels such as CNN, Discovery, and TNT Sports (US). TNT Sports International will join Netflix as part of the deal.

As Hollywood watches closely, Netflix’s promise to continue theatrical releases is seen as an important gesture, but the fate of the deal will depend on regulatory decisions in the months ahead.