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Netflix Got a great deal to buy Warner Bros.That includes its film and television studios HBO and HBO Max, for $82.7 billion. That means fan-favorite franchises – including Game of Thrones, The Sopranos, harry potter, and DC Universe – all of which will join Netflix’s portfolio.
A memo was sent to Warner Bros. employees and viewed by Independent The deal was said to be subject to a number of conditions, including the completion of the separation of Discovery Global and Warner Bros. Discovery.
“This decision reflects the realities of an industry undergoing generational change – changing how stories are funded, produced, distributed and discovered – and recognizes the strong, transformed company we are today,” the memo reads in part.
The deal – which includes approximately $10 billion of debt with an equity value of $72 billion – is not expected to close before the third quarter of 2026, when the Discovery Global separation is scheduled to be completed. It’s not yet clear what changes will impact customers if the deal closes.
Ultimately, Netflix sealed the blockbuster deal by offering $27.75 per share, giving each WBD shareholder $23.25 in cash and $4.50 shares of Netflix common stock. Additionally, Netflix is offering a $5.8 billion reverse breakup fee if government regulators do not approve the deal, which is more than the $5 billion offered by David Ellison’s Paramount Skydance in its latest bid.
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Co-CEO Ted Sarandos said, “Our mission has always been to entertain the world.” Netflixsaid in a statement.
‘Including Warner Bros.’ Incredible library of shows and movies – from timeless classics like casablanca And citizen Kane Like for modern favorites harry potter And Friend-Like with our culture-defining titles stranger things, kpop demon hunter And squid gameHe further said, we will be able to do it even better. “Together, we can give audiences everything they love and help define the next century of storytelling.”
Warner Bros. Discovery CEO David Zaslav, who sent a memo to WBD staff Friday morning laying out details of the deal, announced in a statement that the merger “combines two of the world’s largest storytelling companies” to bring more choices to consumers. He said, “For more than a century, Warner Bros. has thrilled audiences, captured the world’s attention and shaped our culture. Together with Netflix, we will ensure that people everywhere will continue to enjoy the world’s most resonant stories for generations to come.”
While Paramount was proposing to acquire all of Warner Bros. Discovery’s assets as part of its bid, the Netflix deal would allow WBD to move forward with the announced separation of its streaming and studio and global networks divisions into two separate companies. Discovery Global, which will be spun off from Warner Bros. in late 2026 and before the Netflix deal is completed, includes cable television brands CNN, TNT Sports, Discovery and TBS, several free-to-air channels in Europe, and digital and streaming products such as Discovery+ and Bleacher Report.
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Meanwhile, the acquisition comes after a bitter bidding war That pitted WBD against Paramount, home of NBCUniversal, and Comcast.
Paramount lawyers sent Zaslav a blistering letter this week complaining about the sale process, claiming it had been “skewed and unfair” after Warner Bros. requested a second round of bids from suitors willing to acquire some or all of the company’s assets. In addition to Paramount and Netflix, Comcast – the corporation that owns NBCUniversal – has also expressed interest in merging with Warner Bros.
“Through media reporting and otherwise, it has become clear that WBD has abandoned the semblance and reality of a fair transaction process, thereby abdicating its duties to shareholders, and has embarked on a short-sighted process with a predetermined outcome that favors a single bidder,” the letter from Quinn Emanuel lawyers said. CNBC published the full“We specifically request and expect that this letter will be shared and discussed with the full Board of Directors of the WBD,”
The note comes to Zaslav and the WBD Board of Directors According to a Reuters report Netflix’s proposed purchase of WBD’s studios and streaming unit is likely to lower streaming costs for consumers by bundling Netflix’s app with HBO Max.
“In recent talks with Warner Bros. Discovery, Netflix said a potential combination of its streaming service with HBO Max would benefit consumers by reducing the cost of the bundled offering,” Reuters said, adding that the majority of Netflix users also subscribe to WBD’s streaming service.
Backed by his ultra-wealthy father Larry Ellison, Oracle founder and close ally of Donald Trump, David Ellison has been desperately trying to add Warner Bros. Discovery to his growing media empire in recent months. This followed the Trump administration’s approval of Skydance’s $8.4 billion merger with Paramount, which came after a politically complex process in which Paramount paid Trump $16 million to settle his “qualification” deal. 60 minutes After the trial, Ellison began an aggressive campaign to take over WBD.
Alison, who realized she had a “Trump Card” In an attempt to acquire Warner Bros., he was rebuffed at every turn. After Paramount’s first three proposals were completely rejected by the WBD board, Zslasz Essentially hung “For Sale” sign Bidding on the company was opened to other contenders. Nevertheless, throughout the process, Ellison expressed confidence that he would ultimately succeed in convincing the board to approve a merger between the two media giants – largely because he argued that only Paramount’s bid would be approved by the Trump administration.
“Other potential acquirers of WBD – today or in the future – will need to overcome significant (perhaps insurmountable) hurdles given its dominant market position,” Ellison wrote to the board in October.
Trump, who has repeatedly lashed out at Ellison and praised him as a “great man” Ellison praised the changes that have taken place at CBS News in recent months, since the Paramount-Skydance merger. This also includes hiring Anti-Semitic Opinion Writer as Bari Weiss CBS News Editor in ChiefInstalling a former Trump appointee and right-wing think tank leader As ombudsman of news networksand ending the company’s diversity hiring policies. The prospect of Ellison reshaping CNN — which Trump has long despised and considered “fake news” — in the same way CBS News apparently appealed to the media-bashing president.
Despite his belief that he had the inside edge because of a favorable regulatory path enabled by his family’s friendship with the president, Ellison began to push back this week when it became clear that Netflix had taken the lead after Warner Bros. Discovery asked suitors to submit a second round of bids. Amid reports that Zaslav and the board were leaning toward Netflix, Paramount fumed that the sales process had been corrupted.
“Through media reporting and otherwise, it has become clear that WBD has abandoned the semblance and reality of a fair transaction process, thereby abdicated its duties to shareholders, and has embarked on a short-sighted process with a predetermined outcome that favors a single bidder,” Paramount’s Memorandum to Warner Bros. Said this week.
The letter further stated, “Several US media outlets have reported on WBD management’s enthusiasm for a transaction with Netflix and management’s statements that a transaction between WBD and Netflix would be a ‘slam dunk’, as well as negatively referencing Paramount’s bid.” “Additional reporting since the revised bids were submitted on December 1 indicates that WBD’s ‘board actually agreed to a transaction with Netflix due to the ‘chemistry’ between WBD management and Netflix management.”
Ahead of Netflix-WBD deal announcement, situation news Noted on Thursday evening There was a failed deal between WBD and Paramount last summer South Park The licensing agreement “helped poison the relationship between David Zaslav and David Ellison,” and this tension was ongoing during the Warner Bros. auction.
meanwhile, New York Post Reported earlier this week Ellison had a “Plan B” in case that failed – and it involved severing his relationship with the President.
“But if the board chooses Netflix, Ellison is developing a game plan that includes going over the head of the board and telling Warner shareholders directly, which amounts to a hostile bid for the company, according to people with direct knowledge of the matter.” Post wrote. “Their point: The Netflix deal is doomed to fail, facing rejection by President Trump’s antitrust police at the Justice Department and, if sued, losses in federal courts.”
Even before the Netflix deal was announced Friday morning, MAGA lawmakers were expressing their concerns about the merger and suggesting that the purchase would not clear regulatory hurdles.
Sen. Mike Lee (R-UT) tweeted Wednesday night, “Learning about Netflix’s ambitions to buy its real competitive threat – WBD’s streaming business – should alarm antitrust enforcers around the world.” “This potential transaction, if it materializes, would raise serious questions about competition – perhaps more so than any transaction I have seen in nearly a decade.”