Netfix wins auction for Warner Bros. Discovery studios and streaming
Netfix wins auction for Warner Bros. Discovery studios and streaming
The two companies issued a joint release on Friday morning announcing a deal had been reached.
The final gavel has sounded in the auction process for Warner Bros. Discovery, and Netflix is the bidder still standing in the end. On Friday morning. Netflix and WBD announced that they had reached a deal to sell WBD’s movie and TV studios, as well as the company’s streaming assets to Netflix in a blockbuster deal that has the power to reshape Hollywood.
Key Details:
- Deal done: WBD has chosen Netflix as the winning bidder for its assets.
- Close, but not quite: Netflix will pay $27.75 per share for WBD, not quite the high mark WBD CEO David Zaslav wanted.
- Huge library: Netflix will now take over franchises such as Game of Thrones, Harry Potter, and others.
Reports from earlier this week indicated that Netflix had submitted a mostly cash bid for WBD in a second round of bids solicited by the legacy studio. Netflix had been competing with Paramount Skydance and Comcast to ultimately win WBD’s assets.
The deal has a total enterprise value of approximately $82.7 billion, and an equity value of $72 billion. Netflix will pay $27.75 per WBD share in the agreement, not quite the figure of $30 that WBD CEO David Zaslav posited publicly that his company could attract in any deal.
“Our mission has always been to entertain the world,” Netflix co-CEO Ted Sarandos said. “By combining Warner Bros.’ incredible library of shows and movies—from timeless classics like ‘Casablanca’ and ‘Citizen Kane’ to modern favorites like Harry Potter and Friends—with our culture-defining titles like ‘Stranger Things,’ ‘KPop Demon Hunters,’ and ‘Squid Game, we’ll be able to do that even better. Together, we can give audiences more of what they love and help define the next century of storytelling.”
The deal is expected to be completed in the third quarter of 2026, though large regulatory hurdles remain. The White House has already begun preparing an antitrust case against Netflix purchasing WBD’s assets, despite the fact that the president usually has no say in such media transactions.
“Today’s announcement combines two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most,” Zaslav said. “For more than a century, Warner Bros. has thrilled audiences, captured the world’s attention, and shaped our culture. By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come.”
The deal means that Netflix will control a huge selection of the top franchises running in 2025, including Game of Thrones and Harry Potter, as well as DC Studios, the movie rights to Lord of the Rings, and a lot more — before even mentioning the extensive and impressive catalog of titles on HBO Max that are now moving to Netflix’s control. Importantly, Netflix says it will maintain WBD operations and will continue to release movies theatrically from the Warner studio.
What say you about the acquisition of WBD’s studio and streaming assets by Netflix? Are you happy about the way the bidding process played out, or did you want Paramount or Comcast to end up as the winner? Let us know in the comments below!
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