In one of the most consequential media shake-ups of the decade, Netflix and Warner Bros. Discovery have agreed to a blockbuster merger that values the combined assets at $72 billion, marking a seismic shift in the global entertainment industry. Under the terms of the deal, Warner Bros. Discovery shareholders will receive $23.25 in cash and $4.50 in Netflix stock per share, signalling a powerful vote of confidence in the streaming giant’s long-term dominance.
A major part of the agreement requires Warner Bros. Discovery to spin off its cable networks—including CNN, TNT and others—into a separate company by the third quarter of 2026. The restructuring sets the stage for regulatory scrutiny and is designed to smoothen approval processes in multiple jurisdictions. With the spin-off complete, the full merger is expected to close within 12 to 18 months, pending global regulatory and shareholder approvals.
Netflix, now poised to absorb one of Hollywood’s most storied studios, plans to maintain Warner Bros.’ theatrical release commitments through 2029, easing industry concerns about the future of big-screen blockbusters. The company also expects to integrate HBO Max’s premium library directly into its platform, a move that could redefine content consolidation and intensify competition across the streaming ecosystem.
Leaders from both companies hailed the agreement as a landmark union of storytelling powerhouses. They said the merger would enable the creation of richer, more diverse content for audiences worldwide while combining the technological edge of Netflix with the cinematic legacy of Warner Bros. Despite the enthusiasm, both sides acknowledged the regulatory hurdles ahead, with antitrust bodies in the U.S., Europe and Asia expected to closely examine the deal’s implications for market competition.
