Netflix has triumphed in the bidding war for Warner Bros. and HBO, announcing a deal that could combine two of the three biggest streamers with one of the largest traditional movie and television studios.
If the deal goes through, it will fundamentally reshape Hollywood at a precarious time for the entertainment business. It would give Netflix control of some of the industryâs most valuable intellectual property, including Batman, Harry Potter and Game of Thrones, and would give a company that historically had very little interest in movie theaters oversight of the studio that put more butts in seats than any other this year.
But first it will be subjected to intense regulatory review in the US and other countries.
Netflix announced the blockbuster deal with Warner Bros. Discovery on Friday morning. It has agreed to buy the legendary TV and movie studio and assets like the HBO Max streaming service for $72 billion, plus debt.
The announcement jolted Hollywood and jumbled expectations about the next steps for Warner Bros. Discovery, which is also the parent company of CNN.
Warner Bros. Discovery (WBD) said it is moving forward with its plans to split into two publicly traded halves in 2026. Once the split takes effect, Netflix intends to acquire the Warner half. The other half, Discovery Global, will house CNN and other cable channels.
WBD now expects the split to take effect in the summer of 2026.
But this mega-media merger saga is far from over. Paramount and Comcast, the other media giants known to have submitted offers for WBD, may continue to pursue the company.
Netflixâs (NFLX) stock fell more than 2% in early trading, while Warner Bros. Discoveryâs (WBD) stock gained 2%.
For several weeks Paramount was…