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Netflix (NFLX) announced it will acquire Warner Bros., HBO, and HBO Max for $82.7 billion in a cash and stock deal that will rewrite the rules of global entertainment. The transaction values Warner Bros. Discovery at $27.75 per share and ranks among the largest media acquisitions in history.

Netflix prevailed in a bidding war against Paramount and Comcast, offering a $5.8 billion breakup fee to secure exclusive negotiations. Warner Bros. Discovery (WBD) will first complete its planned separation of Discovery Global (the cable networks including CNN, TNT, and Discovery channels) into a standalone public company in the third quarter of 2026. The Netflix acquisition will close 12 to 18 months after that separation, placing the deal’s completion in late 2027 or early 2028. Netflix is acquiring only the studio and streaming assets, which include Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, HBO Max, and their libraries.

The acquisition hands Netflix instant ownership of some of the industry’s most valuable IP. Harry Potter, Batman, Superman, Game of Thrones, Friends, The Sopranos, The Wire, and decades of Warner Bros. classics now sit alongside Stranger Things and Squid Game. Netflix expects to realize $2 billion to $3 billion in annual cost savings by year three and projects the deal will be accretive to earnings by year two.

This transaction represents a strategic reversal for Netflix, which has historically resisted major acquisitions and avoided theatrical distribution. The company will now own one of Hollywood’s oldest and largest studios, complete with a global theatrical distribution apparatus. Ted Sarandos framed the deal as a mission extension, stating that combining Warner Bros.’ library with Netflix’s platform will allow the company to “entertain the world” more effectively.

Regulatory scrutiny will be intense. The Department of Justice has already signaled antitrust concerns about Netflix’s market dominance. The Directors Guild of America announced it will seek meetings with Netflix over “significant concerns,” and film producers have urged Congress to block the merger, arguing it threatens theatrical exhibition and competition. Theater owners warn that Netflix could reduce theatrical output and depress licensing fees.

If this deal goes through, it ends the streaming wars through acquisition rather than competition. For creators, this means fewer buyers with more power. A combined Netflix/WB. will become a dominant player that controls production, distribution, and pricing at scale. Great for Netflix shareholders. For creators? Not so much.

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