From deal size to antitrust scrutiny— key things to know as Netflix moves to buy Warner Bros film and streaming unit

Netflix agrees to buy Warner Bros. Discovery’s TV and film studios and streaming division for $72 billion; It’s a blockbuster deal that will give the streaming division control of one of Hollywood’s oldest assets and most valuable entertainment empires.

Thanks to this agreement, Netflix will gain control of iconic series such as “Game of Thrones”, “DC Comics” and “Harry Potter”. This will also strengthen the streaming giant’s hand against rivals such as Disney and Paramount, which is backed by the Ellison family.

“Together we can give audiences more of what they love and help define the next century of storytelling,” said Netflix co-CEO Ted Sarandos. Reuters.

All about the mega deal

— Bidding war that lasted for weeks:

The deal, announced Friday, was finalized after a weeks-long bidding war in which Netflix came out ahead with a bid of about $28 per share, beating out Paramount Skydance’s bid of about $24 for the entire Warner Bros. Discovery business, including the cable TV assets that would be transferred.

Paramount, led by David Ellison, who started the bidding war with a series of unsolicited offers and has close ties to US President Donald Trump, had raised questions about the sales process in a letter earlier this week claiming that Netflix had been treated favorably.

— Stock market reacts to deal

The market’s initial reaction reflects investor caution, with Netflix shares losing nearly 3% in pre-market trading following the deal’s announcement.

Warner Bros. Discovery shares held steady and closed at $24.5 on Thursday, giving it a market cap of $61 billion.

Rival bidder Paramount also lost 2.2%. The third suitor, Comcast, had not changed much.

— Expect intense antitrust scrutiny

Analysts say Netflix is ​​acting on a strategy to secure long-term rights to popular TV series and movies, is reducing its reliance on external studios as it expands into gaming, and is looking for new growth opportunities following the success of its password-sharing restriction.

But the deal is expected to face strong antitrust scrutiny in Europe and the United States, as it would give full ownership of a rival that hosts the world’s largest streaming service, HBO Max, with about 130 million streaming subscribers.

— Cash and stock agreement

Under the deal, each Warner Bros. Discovery shareholder will receive $23.25 in cash and approximately $4.50 in Netflix stock per share; That would leave the company at $27.75 per share, or about $72 billion in equity and $82.7 billion including debt.

The deal is expected to be completed by Warner Bros Discovery spinning off its global network unit, Discovery Global, into a separate company; This process is now planned to be completed in the third quarter of 2026.

Netflix expects the acquisition to deliver annual cost savings of at least $2 billion to $3 billion in the third year after the deal closes.