Netflix to buy Warner Bros Discovery’s studios, streaming unit for $72 billion-awdailynews

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2025-12-05

Netflix to buy Warner Bros Discovery’s studios, streaming unit for $72 billion

Dec 5 (Reuters) – Netflix has agreed to buy Warner Bros Discovery’s TV, film studios and streaming division for $72 billion, a deal that would hand control of one of Hollywood’s most prized and oldest assets to the streaming pioneer.

Buying the owner of marquee franchises, including “Game of Thrones”, “DC Comics” and “Harry Potter”, will further tilt the balance of power in Hollywood in favor of Netflix. But the deal is likely to face strong antitrust scrutiny in ‌Europe and the U.S.

By the numbers:-

— The deal values Warner Bros Discovery at $27.75 a share, or about $72 billion in equity, and $82.7 billion, including debt

— Netflix has offered Warner Bros Discovery a $5.8 billion breakup fee, while Warner ‌Bros Discovery would pay Netflix $2.8 billion if the deal collapses

— Netflix said it expects to generate at least $2 billion to $3 billion in annual cost savings by the third year after the deal closes

JASON KILAR, FORMER WARNERMEDIA CEO, ON X

“If I was tasked with doing so, I could not think of a more effective way to reduce competition in Hollywood than selling WBD to Netflix.”

ANTHONY SAGLIMBENE, CHIEF MARKET STRATEGIST AT AMERIPRISE FINANCIAL, DETROIT

“The largest factor of a deal of this size and complexity is the potential regulatory hurdles that these two companies ⁠are going to have to go through. But they obviously came ‌to an agreement, thinking that it’s worth the struggle. This move is a recognition that there’s more optimism about the ability to get deals done. Both companies probably expect that they may need to sell assets to close the deal. And I think there’s more ‍than enough room for them to do that.”

TOM HARRINGTON, HEAD OF TELEVISION AT ENDERS ANALYSIS, GREATER LONDON

“The regulatory possibility of this going through is hard to gauge given that much of it remains stateside and will pivot on the whims of the President… As such there will be resistance from parts of Hollywood and various unions. HBO, the creative jewel, would be terribly exposed within Netflix, although it has survived difficult owners for a lot of its existence.”

“For consumers, this would likely result in rising costs: Netflix would get more expensive and ‌even though HBO Max would be shuttered/become non-essential, the greater penetration of Netflix households would likely mean an increase in total overall subscription revenues.”

ART HOGAN, CHIEF MARKET STRATEGIST AT B RILEY WEALTH, NY

“The thing that I find the most incredible about this deal is that Netflix is so confident in getting regulatory approvals that they’re willing to put up a $5 billion breakup fee.