'Earthquake' in Hollywood: Netflix spends $82 billion to acquire Warner Bros

Netflix has just created a huge earthquake in Hollywood when it agreed to acquire Warner Bros. Discovery (WBD) in a huge deal worth more than 82 billion USD - the highest in the history of the world's largest streaming platform.

The deal not only shakes up the entertainment industry but also ushers in a new era of competition in the digital content industry. This is considered a turning point that could reshape the balance of power in Hollywood for decades to come.

According to the agreement, each share of WBD - the owner of legendary brands such as " Game of Thrones, " "DC universe" and "Harry Potter" - is valued at 27.75 USD, equivalent to 82.7 billion USD in capitalization, in which shareholders receive 23.25 USD in cash and 4.50 USD in Netflix shares for each share owned.

The deal is expected to close in 12-18 months, after WBD completes the spin-off of its Global Networks division into a standalone public company called Discovery Global.

Warner Bros. will be split into two entities: one company that owns the studio and streaming services, and one that controls the global cable networks.

With this turning point, Netflix for the first time owns a true "treasure trove" of content - something they have always craved in direct competition with Disney and Paramount.

Before Netflix, Paramount and Comcast had been involved in a bidding war that had lasted for weeks. Paramount Skydance offered about $24 a share for all of WBD, including cable networks like CNN, TNT and TBS, but Netflix came out on top with a price that was almost “impossible to refuse.”

Netflix agreed to pay a $5.8 billion termination fee if the deal failed, while WBD would pay $2.8 billion if it withdrew.

However, to get their hands on the Warner Bros. gem, Netflix will have to overcome the biggest hurdle: antitrust scrutiny in the US and Europe. Netflix is currently the largest streaming platform in the world, while Warner Bros. owns HBO Max and nearly 130 million subscribers - enough to attract special attention from regulators.

Paramount has accused the negotiations of “showing signs of favoring Netflix.” Some US lawmakers have warned that the deal could harm consumers and reduce competition across the entertainment industry.

Global exhibitor group Cinema United called it an “unprecedented threat” to theaters worldwide, while director James Cameron warned that Netflix’s takeover of Warner Bros could be “a disaster” for the film industry.

In order to reduce pressure from public opinion and management agencies, Netflix announced that the deal would bring many benefits such as having more movies and TV series for audiences; expanding content production in the US; increasing spending on original works; creating more jobs and opportunities for creators and committing to maintaining the release of Warner Bros. films in theaters.

The deal is expected to close in the third quarter of 2026, if it clears all regulatory hurdles. If successful, Hollywood is likely to enter a period of deep restructuring, where streaming—instead of theaters or traditional television—becomes the center of the entertainment ecosystem./.

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