The deal will see Netflix acquire Warner Bros. Discovery’s film and TV studios and its streaming operations, including HBO Max, in a deal with an equity value of roughly $72 billion, or about $27.75 per share in cash and stock, valuing Warner Bros. at $82.7 billion. The agreement followed a heated auction in which Netflix’s bid edged out offers from Paramount Skydance and Comcast, both of which had pushed to keep the storied Warner assets in more traditional hands.

Two days before Netflix won the bidding, Paramount hinted at its fury with a strongly worded letter to WBD CEO David Zaslav, arguing the process was “tainted” and Warner Bros. was favoring a single bidder: Netflix. Paramount called it a “myopic process with a predetermined outcome that favors a single bidder,” Bloomberg reported, although Netflix’s bid is understood to be the highest of the three.

Another angry group is theater owners, who have famously warred with Netflix for years over the big red streamer’s reluctance, even refusal to follow traditional theatrical-release practices. Netflix Co-CEO Ted Sarandos has adamantly defended Netflix’s streaming-forward distribution, saying it’s what consumers really want. At the Time 100 event in April of this year, Sarandos called theatrical release “an outmoded idea for most people” and said Netflix was “saving Hollywood” by giving people what they want: streaming at home.

Cinema United, the trade association which represents over 30,000 movie screens in the U.S. and 26,000 internationally, immediately announced its opposition to Netflix acquiring a legacy Hollywood studio. The organization’s chief, Michael O’Leary, said it “poses an unprecedented threat to the global exhibition business” as Netflix’s states business model simply does not support theatrical exhibition. He urged regulators to look closely at the acquisition.

Deadline reported that other producers are warning of “the death of Hollywood” as a result of this deal. Several days earlier, Bank of America Research’s analysts had surveyed the landscape and concluded that as a defensive move, Netflix would be “killing three birds with one stone,” as its ownership of Warner Bros’ would be a daunting blow to Paramount and Comcast, while taking the Warner legacy studio out of the running. The bank calculated that a combined Netflix and Warner Bros. would comprise roughly 21% of total streaming time—still shy of YouTube’s 28% hold on the market, but far greater than Paramount’s 5% and Comcast’s 4%.

What’s known and what’s still at play

As part of the deal, Netflix will retain the studio that controls the superheroes of DC, the Wizarding World of Harry Potter, and HBO’s prestige brands. Other details on what will happen to the standalone streaming service HBO Max were scant, with the companies saying only that Netflix will “maintain” Warner Bros. current operations. The companies expect the transaction to close after regulatory review, with Netflix projecting billions in annual cost savings by the third year after completion.

​The deal will not include all of Warner Bros. Discovery, according to the press release announcing the acquisition, which said the previously announced plans to separate WBD’s cable operations will be completed before the Netflix deal, in the third quarter of 2026. The newly separated publicly traded company holding the Global Networks division will be called Discovery Global, and will include CNN, TNT Sports in the U.S., as well as Discovery, free-to-air channels across Europe, plus digital products such as Discovery+ and Bleacher Report.  

On a conference call with reporters Friday morning, Sarandos said Netflix is “highly confident in the regulatory process,” calling the deal pro-consumer, pro-innovation, pro-worker, pro-creator and pro-growth. He said Netflix planned to work closely with regulators and was running “full speed” ahead toward getting all regulatory approvals. He added that Netflix executives were “tired” after “an incredibly rigorous and competitive process.” Alluding to Netflix’s traditional resistance to big M&A, Sarandos added that “we don’t do many of these, but we were deep in this one.”

Influential entertainment journalist Matt Belloni of Puck previewed the likely deal on Bill Simmons’ podcast on Spotify’s Ringer network (which recently struck a deal to bring some video podcasts to Netflix), and they speculated about potential problems inside Netflix that brought the deal to a head. In conversation about how defensive the move is, Belloni said Netflix is “doing this for a reason” and may have reached a “stress point” because it hasn’t been getting traction with its own moviemaking efforts after 10 years of trying. (Netflix has also been agonizingly close to an elusive Best Picture Oscar, with close calls on Roma and Emilia Perez, the latter of which was derailed in a bizarre social-media controversy.) Belloni also acknowledged the criticism that Netflix has struggled to create its own franchises, also after years of trying.

Sarandos highlighted Netflix’s homegrown franchises while announcing the deal, arguing that Netflix’s ” culture-defining titles like Stranger Things, KPop Demon Hunters and Squid Game” will now combine with Warner’s deep library including classics Casablanca and Citizen Kane, even Friends.

The biggest losers in the bidding war may be David Ellison and his father, Oracle co‑founder (and long-time Republican donor)Larry Ellison, whose Paramount‑Skydance empire had been widely seen as a front‑runner to acquire Warner Bros. Discovery. David Ellison, has since reportedly been pleading his case around Washington, meeting Trump administration officials as allies float antitrust and national‑interest concerns about giving Netflix control of such a critical studio.