Netflix Netflix, Inc. (NASDAQ: NFLX) has agreed to acquire Warner Bros. Discovery (NASDAQ: WBD) film studio and HBO Max streaming service for $72 billion in equity value, part of a total enterprise value around $82.7 billion. This cash and stock deal values each WBD share at $27.75, with shareholders receiving $23.25 in cash plus about 0.4 Netflix shares per WBD share. The equity figure reflects the core purchase price for the targeted assets, while the enterprise value adds WBDs net debt of roughly $10.7 billion assumed by Netflix, creating a fuller picture of the financial commitment in a market where streaming giants juggle high content costs and subscriber growth. Closing remains probably 12 to 18 months away, pending approvals.
The path to this agreement traces back to Warner Bros. Discovery CEO David Zaslavs October announcement of a company split, separating cable networks like CNN and TNT from the more valuable studio and streaming operations. Pressure mounted after WBD’s stock plunged from $25 to $7.52 post its 2022 merger of WarnerMedia and Discovery, prompting Zaslav to seek buyers for the prime assets. Paramount Global (NASDAQ: PARA), under new CEO David Ellison, ignited the contest with unsolicited offers starting in the fall, aiming initially for all of WBD despite its smaller $15 billion market cap. Ellison, leveraging ties to the Trump administration, argued his bid offered a smoother regulatory path.
Netflix entered with a targeted strike at $28 per share for just the studio and HBO Max, outpacing Paramount’s $24 to $27 per share full company play and Comcast’s (NASDAQ: CMCSA) quieter pursuit of the same pieces. Paramount fired back in a pointed letter, accusing WBD of a rigged process favoring Netflix and warning of antitrust pitfalls for the streaming leader. Netflix countered with a $5 to $5.8 billion breakup fee if the deal falters, plus pledges to keep Warner Bros. films in theaters, easing studio concerns. Comcast stayed on the sidelines as talks turned exclusive between Netflix and WBD by late Thursday.
This transaction sits amid broader U.S. media consolidation, echoing Disney’s $71 billion 21st Century Fox purchase in 2019, as legacy players bundle content to battle cord-cutting and ad declines. Streaming now claims over 40% of U.S. TV viewing time, pushing firms to merge libraries for scale amid rising production expenses. Yet regulators eye dominance closely; Netflix’s 300 million global subscribers plus HBO Max’s 130 million could spark Federal Trade Commission or Justice Department reviews, especially under a Trump administration sensitive to media power shifts. Paramount’s objections highlight fears of Netflix cementing unassailable market control.
The deal reshapes content wars, handing Netflix HBO’s prestige titles and Warner Bros. franchises like DC Comics alongside its originals. WBD proceeds with its cable spinoff, unlocking value from undervalued networks. Rivals like Comcast recalibrate, while Ellison eyes next moves in a landscape demanding fresh alliances to thrive. ​
