Netflix Seals $72 Billion Deal to Acquire Warner Bros. Assets

Netflix Inc. has finalized an agreement to acquire several assets from Warner Bros. Discovery Inc. in a landmark deal valued at approximately $72 billion. The companies announced the transaction today, marking a significant shift in the competitive landscape of the entertainment industry. This acquisition follows a bidding war that also involved Comcast Corp. and Paramount Skydance Corp., which is backed by Oracle Corp. executive chair Larry Ellison.

As part of the agreement, Netflix will obtain Warner Bros.’ extensive film and television libraries, along with several key business units. This includes the prominent HBO streaming brand and multiple production studios. The assets not included in the deal will be consolidated into a standalone entity, tentatively called Global Networks, which is set to go public in 2026. Global Networks will encompass CNN, numerous television channels, and the Discovery+ streaming service.

To finance the acquisition, Netflix plans to leverage $59 billion in debt from a consortium of banks. Notably, Wells Fargo will contribute nearly half of this amount, approximately $29.5 billion, through a loan that is anticipated to be the largest of its kind on record. The remainder of the financing will be provided by BNP Paribas SA and HSBC Plc.

Netflix will utilize bridge loans for the transaction, which are short-term credits that companies typically replace with long-term financing. The streaming giant expects to convert up to $25 billion of this bridge financing into corporate bonds, while the remaining amount will be covered through delayed-draw term loans and a $5 billion revolving credit facility.

Warner Bros. investors will benefit from the deal, receiving $27.75 per share, which includes $23.25 in cash and $4.50 worth of Netflix common stock. In contrast, Paramount, another contender in the bidding process, had offered $30 per share earlier this year in an attempt to acquire the entire Warner Bros. company rather than initiate a spinoff.

Once the acquisition is finalized, Netflix intends to integrate the films and television shows acquired through the deal into its streaming platform. The company also plans to enhance its investment in new content production, stating that the Warner Bros. studios will allow it to expand its production capacity in the U.S. In a statement, Netflix emphasized that this move would “optimize its plans for consumers, enhancing viewing options,” hinting at potential new subscription models utilizing the acquired content.

At the same time, Netflix has committed to maintaining theatrical releases for Warner Bros. films. Greg Peters, co-Chief Executive Officer of Netflix, remarked, “This acquisition will improve our offering and accelerate our business for decades to come.”

Given the scale of this deal, it is likely to attract significant antitrust scrutiny, as it could reshape the entertainment sector. Should regulators reject the transaction, Netflix would incur a termination fee of $5.8 billion to Warner Bros. The streaming giant anticipates closing the acquisition after Warner Bros. completes the spinoff of its Global Networks business in the third quarter of 2026.