Warner Bros. Discovery Sells Its Assets to Netflix in $82.7 Billion Deal Reshaping Hollywood

Hadisur Rahman, JadeTimes Staff

H. Rahman is a Jadetimes news reporter covering Business

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Image Source: Jill Connelly / Bloomberg via Getty Images file

In a watershed moment for the entertainment industry, Warner Bros. Discovery announced on Friday that it has agreed to sell its movie, television, and streaming assets to Netflix in a deal valued at approximately $82.7 billion. The transaction, if approved by federal regulators, would consolidate two of the world’s most influential content businesses and create a media behemoth capable of redefining the balance of power in Hollywood.

Under the terms of the agreement, Netflix would acquire key Warner properties, including the HBO network, the HBO Max streaming platform, and the extensive Harry Potter film franchise, among other holdings. Netflix, already the home of popular series such as Stranger Things and Squid Game, would significantly bolster its content library and global reach, which currently spans more than 300 million paid subscribers in over 190 countries. The deal signals Netflix’s ambition to accelerate its shift from a streaming-first platform to a vertically integrated entertainment company with substantial production and distribution capabilities.

Representatives from Netflix described the arrangement as a strategic step to broaden the company’s storytelling repertoire, noting that the combined library would encompass a broad spectrum of content from classic cinema to contemporary prestige television. Ted Sarandos, co-CEO of Netflix, highlighted the union of Warner Bros.’ storied film catalog with Netflix’s original programming as a pathway to deliver more diverse and expansive storytelling to audiences worldwide. The leadership at Warner Bros. Discovery, led by CEO David Zaslav, emphasized that the merger would unlock new opportunities for creative collaboration and distribution while maintaining a commitment to the legacy and value of Warner Bros.’ intellectual property.

The proposed deal includes a mix of cash and stock and would place Warner Bros. Discovery at a reduced market value relative to the stated enterprise value. The transaction would not involve Warner-owned cable channels such as CNN, TNT, and TBS, focusing the combination on the film, television, and streaming units. Regulatory scrutiny is anticipated, given the potential impact on competition within the rapidly evolving media landscape, with antitrust considerations and consumer welfare concerns expected to guide the review process.

Industry observers anticipate rapid shifts in production pipelines, licensing strategies, and theatrical release plans as the combined entity seeks to optimize its position in an increasingly digital, globally connected market. While some creators and exhibitors express cautious optimism about preserved theatrical windows and continued collaboration, others raise questions about how the newly formed powerhouse will navigate distribution nuances and platform licensing across regions. The coming months are likely to define how this historic merger reshapes the entertainment economy and sets a precedent for future consolidation in media.