Content-streaming giant Netflix has agreed to buy the film and TV studios of media and entertainment heavyweight Warner Bros. Discovery (WBD), in a seismic deal worth $72 billion.
Netflix has emerged triumphant from a bidding field that also included the likes of Paramount and Comcast, having recently started exclusive talks with WBD for these assets. Both boards have now given their unanimous approval.
The specific film and TV divisions of WBD will come under Netflix ownership as soon as the Discovery Global arm, which contains the TNT sports channels in the Americas, is separated.
According to reports, it its likely the deal will not be completed before either late 2026 or 2027.
If and when it does go through, it will create a new behemoth in the content, media, and streaming industries.
WarnerMedia (as was) first combined with Discovery in 2022, with that agreement worth $43 billion.
In terms of its major rights, WBD in the US has a domestic rights stable that includes the French Open tennis grand slam, Major League Baseball, college football, and ice hockey’s NHL, as well as an expansive international portfolio that also includes the HBO Max over-the-top service.
Netflix, meanwhile, has been getting more and more involved in the live-streaming of sport over recent years, and now holds rights to top-tier properties from sports such as American football, baseball, boxing, tennis, and soccer (through the acquisition of FIFA Women's World Cup rights in the US for the next two editions).
Earlier this year, WBD announced a major split into two publicly traded companies, separating its studios and cable businesses.
The new Streaming and Studios company will consist of Warner Bros. Television, Warner Bros. Motion Picture Group, as well as DC Studios, HBO, and HBO Max. The Global Networks creation, meanwhile, will "include premier entertainment, sports, and news television brands around the world," including TNT Sports in the US, Discovery, as well as the Discovery+ streaming service.
The separation of these two entities is expected to be complete by mid-2026, subject to final conditions such as final approval from the WBD board. David Zaslav, president and chief executive of WBD, will take those same roles in Streaming & Studios, while Gunnar Wiedenfels, the company's chief financial officer, will serve as president and chief executive for Global Networks.
Ted Sarandos, co-chief executive (CEO) at Netflix, has now said he is "highly confident" that the deal with WBD will be approved by the necessary regulatory authorities.
David Zaslav, president and CEO at WBD, added that the deal will combine "two of the greatest storytelling companies in the world.
"By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world's most resonant stories for generations to come."
The Paramount bid, ultimately rejected, was for the entirety of WBD and was tabled in October.
After that rejection, WBD went on to confirm that it was indeed exploring a sale.
