Netflix has announced a landmark agreement to acquire Warner Bros. in a cash-and-stock transaction valued at $72 billion, a move that could redefine the balance of power in the entertainment industry. The deal will proceed once Warner Bros. Discovery separates its global networks division into an independent publicly traded company, a process expected to conclude by the third quarter of next year.
A merger between Netflix and Warner Bros. would bring together the world’s leading streaming platform and one of Hollywood’s most influential studios, home to franchises such as the DC universe, Harry Potter and the entire HBO catalog. Analysts estimate that the combined group could capture up to 10% of total U.S. TV viewing and generate more than $2.3 billion in American advertising revenue, significantly accelerating Netflix’s expansion in the ad market.
Greg Peters, co-CEO of Netflix, welcomed the agreement, describing it as a long-term transformation for the company. “This acquisition will improve our offering and accelerate our business for decades to come,” he said.
Netflix secured the deal after a competitive bidding battle involving Paramount Skydance and Comcast, parent company of NBCUniversal. The overall enterprise value of the transaction is estimated at $82.7 billion. Yet the acquisition still faces intense regulatory scrutiny, with analysts warning of substantial antitrust risks given the scale of consolidation it represents. Netflix’s stock declined on Friday as investors weighed the possible challenges ahead.
If approved, the deal could mark a decisive turning point for the traditional U.S. media landscape, already weakened by cord-cutting and declines in cable television revenues. “If this deal makes it through regulatory approval, Netflix will cement itself as the Goliath of streaming services,” said Mike Proulx, vice-president and research director at Forrester. “This represents a seismic shift in the entertainment industry.”
The acquisition also highlights how Netflix’s strategy has evolved. Long reluctant to buy external studios and opposed to advertising, the platform now relies heavily on its ad-supported tier, which has reached 190 million monthly active viewers. Advertising revenue is expected to double this year. Netflix is also developing its own ad-tech infrastructure and expanding partnerships — including one with Amazon — in a bid to grow its advertising scale.
The potential merger follows another major consolidation in the marketing world: Omnicom’s recent $13 billion acquisition of Interpublic Group, creating the world’s largest advertising services company. The Netflix–Warner Bros. deal signals that the entertainment sector may now be entering its own cycle of restructuring.
