Netflix announces deal to buy Warner Bros. and HBO

Originally Published: 05 DEC 25 07:15 ET

Updated: 05 DEC 25 07:16 ET

By Brian Stelter, CNN

(CNN) — Netflix has triumphed in the bidding war for Warner Bros. and HBO.

On Friday morning, Netflix said it has reached a deal with Warner Bros. Discovery to buy the legendary TV and movie studio and assets like the HBO Max streaming service for $72 billion.

The announcement jolted Hollywood and jumbled expectations about the next steps for Warner Bros. Discovery, which is also the parent company of CNN.

Warner Bros. Discovery is moving forward with its plans to split into two publicly traded halves in 2026. Once the split takes effect, Netflix intends to acquire the Warner half. The other half, Discovery Global, will house CNN and other cable channels.

A combination of Netflix, Warner Bros. and HBO will require intense regulatory review in the US and other countries.

The combo would create a streaming entertainment behemoth and end one of the great media industry rivalries of the past decade. A recent Bank of America analyst report put it this way: “If Netflix acquires Warner Bros., the streaming wars are effectively over. Netflix would become the undisputed global powerhouse of Hollywood beyond even its currently lofty position.”

For several weeks Paramount was thought to be the frontrunner in the auction for WBD. Paramount executives, who want to buy all of WBD – including its cable assets – exuded confidence about their merger proposal and their mutually beneficial relationship with President Trump.

But Netflix surprised many with the boldness of its bids. The streaming giant submitted two proposals earlier this week that vaulted it ahead of Paramount’s offers, according to sources familiar with the matter.

Furthermore, Netflix agreed to the same costly breakup fee that Paramount proposed, one of the sources said. This means the would-be buyer will pay WBD billions of dollars if the deal is not completed.

The biggest X factor is regulatory approval. The Trump administration will review any transaction between Netflix and WBD, and some analysts expect a political and legal battle to ensue.

Some American politicians have already raised concerns about the potential consolidation.

“Learning about Netflix’s ambition to buy its real competitive threat — WBD’s streaming business — should send alarm to antitrust enforcers around the world,” Sen. Mike Lee wrote on X. “This potential transaction, if it were to materialize, would raise serious competition questions — perhaps more so than any transaction I’ve seen in about a decade.”

Paramount and Comcast, the other media giant known to have submitted offers for WBD, may continue to pursue a deal. In other words, this saga is far from over.

This is a developing story and will be updated.

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