In a move that will reshape the global entertainment landscape, streaming giant Netflix has agreed to a landmark acquisition of Warner Bros. Discovery's studio and streaming assets. The deal, valued at a staggering $72 billion plus debt, is poised to bring one of Hollywood's most legendary film and television libraries under the umbrella of the world's leading streaming platform.
The Details of the Mega-Merger
The agreement, which still requires approval from regulators, will grant Netflix control over the historic Warner Bros. film and TV studios, as well as the premium cable channel HBO and its streaming service, HBO Max. The transaction is set to officially close after Warner Bros. Discovery completes a planned corporate restructuring.
That restructuring, expected in 2026, will see the company's Global Networks division spun off into a new publicly traded entity. Under this new structure, Netflix will take ownership of the studios and streaming platforms. Meanwhile, the newly formed Discovery Global company will retain oversight of CNN and the firm's various cable networks.
A New Library of Legends
This merger creates an unprecedented content powerhouse. It combines Warner Bros.' iconic catalog and blockbuster franchises—including Harry Potter, DC superheroes, The Sopranos, Game of Thrones, Friends, The Big Bang Theory, and the classic Casablanca—with Netflix's own global hits like Stranger Things, Wednesday, Bridgerton, and Squid Game.
Netflix has stated its intention to maintain Warner Bros.' current operations, which includes continuing to release films in cinemas. This is a significant strategic shift for Netflix, which has historically focused on building its own original content library rather than pursuing major acquisitions. As of the last quarter, 63% of Netflix's viewing library consisted of originals, with no single title accounting for more than 1% of total viewing time.
Shifting the Streaming Battlefield
Industry analysts view this acquisition as a direct response to the fiercely competitive and consolidating streaming market. With rival platforms like HBO Max, Paramount+, and Peacock struggling to achieve profitable scale, Netflix's move effectively prevents a competitor from seizing control of Warner Bros.' immensely valuable intellectual property. It decisively strengthens Netflix's position as the undisputed industry leader.
Netflix co-CEO Ted Sarandos commented on the deal, stating that the combined platforms will "give audiences more of what they love and help define the next century of storytelling." The acquisition process was highly competitive, with Paramount, Netflix, and Comcast all submitting bids for the Warner Bros. Discovery assets. Paramount even raised concerns about the fairness of the bidding process, highlighting the critical importance of these assets for future growth.
While all bids were expected to face antitrust review, analysts noted that Netflix and Comcast would likely encounter more regulatory scrutiny due to their massive size. Despite these potential hurdles, Netflix held the strongest financial position. The final agreement includes both cash and stock components, with Warner Bros. Discovery shareholders set to receive $23.25 in cash and $4.50 in Netflix shares for each share they own.
For audiences in Nigeria and worldwide, this deal promises to centralise a vast portion of the most beloved films and series on a single platform, potentially changing subscription decisions and viewing habits for years to come.
