Netflix Makes Its Biggest Move Ever With $75 Billion Warner Bros. (WBD) Studio Deal

Netflix just rewrote the streaming playbook—with a $75 billion check.

The streaming giant's acquisition of Warner Bros. (WBD) isn't just another deal; it's a tectonic shift for the entire media landscape. Forget licensing scraps and co-productions. This is a full-scale invasion into the heart of Hollywood's old guard.

The New Content Empire

Overnight, Netflix's library absorbs a century of cinematic legacy. Think HBO's prestige dramas, DC's superhero universe, and a back catalog that defines pop culture. The move instantly solves Netflix's two biggest headaches: fleeting subscriber loyalty and the relentless content arms race.

Now, the competition isn't just playing catch-up—they're staring at a fortified city.

Wall Street's Calculated Gamble

That $75 billion price tag? It's a bet that owning the factory is cheaper than forever renting its products. The deal effectively verticalizes Netflix, controlling everything from script to screen to subscriber. Analysts are scrambling to model the synergies, while rivals are recasting their entire survival strategy.

One cynical fund manager quipped, 'They've traded content debt for real debt. At least the interest payments are predictable.'

The Domino Effect Begins

Expect immediate fallout. Other studios become either acquisition targets or fortress builders. Talent and IP valuations just skyrocketed. For consumers, the promise of 'everything in one place' edges closer, but the cost of that convenience—in monthly fees and market concentration—is yet to be fully tallied.

Netflix didn't just buy a studio. It bought a future where it sets the rules. The streaming wars have a new, undisputed heavyweight champion. For everyone else, it's adapt or evaporate.

TLDR

• Warner Bros. Discovery entered exclusive negotiations to sell its film and TV studios and HBO Max streaming service to Netflix for $28 per share, mostly in cash
• Netflix is offering a $5 billion breakup fee if regulators don’t approve the deal, pulling ahead of Paramount and Comcast in the bidding
• Warner Bros. will complete its planned spinoff of cable channels including CNN, TBS, and TNT before the sale closes
• Warner Bros. shares jumped 4.3% in premarket trading while Netflix shares dipped 0.6% on the news
• The deal faces antitrust scrutiny in the US and Europe, with California Republican Darrell Issa and Utah Senator Mike Lee raising concerns

Netflix has entered exclusive talks to acquire Warner Bros. Discovery’s film and TV studios along with HBO Max for $28 per share. The mostly cash offer values the assets at roughly $75 billion.

Warner Bros. Discovery, Inc., WBD

The streaming giant is offering a $5 billion breakup fee if regulators block the transaction. Warner Bros. shares ROSE 4.3% in premarket trading on Friday after closing at $24.54. Netflix shares fell 0.6%.

The deal could be announced within days if negotiations don’t fall apart. Netflix beat out competing bids from Paramount Skydance and Comcast. Paramount CEO David Ellison kicked off the bidding with multiple unsolicited offers earlier this year.

Warner Bros. formally put itself up for sale in October after receiving interest from several buyers. Before closing the sale, the company will spin off its cable networks including CNN, TBS, and TNT.

The acquisition marks a big shift for Netflix. The company has never done a deal this large. It built its $437 billion market value by licensing content and creating original programming.

The purchase brings Netflix ownership of HBO and its library of hit shows. Warner Bros. assets include the Burbank studios and a massive film and TV archive. The combined company WOULD have about 450 million subscribers.

Deal Process Gets Heated

Paramount accused Warner Bros. of running an unfair sale process that favored Netflix. A December 3 letter from Paramount’s lawyers called the auction “tainted.” Paramount argued its bid was more likely to pass regulatory approval.

Netflix finished 2024 with $39 billion in revenue. Warner Bros., founded in the 1920s, had more than $39 billion in sales. The two companies represent different eras of entertainment coming together.

The traditional TV business is shrinking as viewers MOVE to streaming. Warner Bros. cable division saw revenue drop 23% in the most recent quarter. Customers are canceling subscriptions and advertisers are leaving.

Regulatory Hurdles Ahead

The deal faces antitrust scrutiny in the US and Europe. California Republican Darrell Issa wrote to regulators objecting to the transaction. He said it could harm consumers.

Utah Senator Mike Lee echoed those concerns this week. Netflix argues that YouTube is one of its biggest competitors. The company is trying to ease regulatory concerns by saying the deal would lower prices through bundling.

Hollywood is nervous about the acquisition. Netflix rarely releases films in theaters. The company occasionally gives original movies limited theatrical runs.

Bloomberg Intelligence analysts say a $30 per share bid implies a steep equity valuation of $75 billion. The combined subscriber base would trigger antitrust concerns. Warner Bros. iconic content would help Netflix maintain its lead over Disney and Paramount.

Netflix’s offer of $28 per share beats Paramount’s earlier bid of about $24 per share. An announcement could come within days if talks continue smoothly.