In one of the most dramatic shake-ups Hollywood has ever seen, Netflix has struck a monumental $72 billion deal to acquire the film and streaming businesses of Warner Bros Discovery, positioning itself as the most dominant force in global entertainment. After months of competitive bidding that involved major rivals such as Paramount Skydance and Comcast, Netflix emerged as the unexpected victor—sending shockwaves across the film, tech, and media industries.

The acquisition gives Netflix control of some of the world’s most valuable entertainment franchises, including Harry Potter, Game of Thrones, and the entire HBO library, alongside Warner Bros’ film studio and its massive catalogue of iconic movies. Netflix co-CEO Ted Sarandos said the company is “highly confident” the deal will pass regulatory scrutiny and described the opportunity as “a rare moment to define the next century of storytelling.”

Sarandos emphasized that combining Warner Bros’ century-long legacy with Netflix’s global streaming machine will give audiences unprecedented access to high-quality content on a scale never seen before. “Warner Bros defined the last century of entertainment,” he said. “Together, we can define the next one.”

Analysts say that if the deal moves forward, it will radically reshape the structure of Hollywood. The merger unites Netflix’s powerhouse streaming platform with Warner Bros’ world-class production engine, allowing Netflix to significantly expand its studio capacity while preserving the traditional cinema pipeline. Netflix confirmed that Warner Bros movies will continue premiering in theatres, while the Warner Bros Television studio will maintain its partnerships with third-party platforms. Netflix, in turn, will keep producing exclusive original content for its own service.

The transaction, unanimously approved by both companies’ boards, values Warner Bros at $82.7 billion on an enterprise basis, with the equity component—the cash/stock price—coming in at $72 billion, or $27.75 per share. Warner Bros CEO David Zaslav said the agreement unites “two of the greatest storytelling companies in the world” and ensures the studio’s creative legacy continues on the largest possible stage.

Industry observers are calling the merger a bold declaration of Netflix’s ambition to lead the next era of global streaming. Paolo Pescatore, a media and telecom analyst, said the acquisition is “a huge statement of intent” but cautioned that integrating two massive operations will be a major challenge. Analysts also warned that the deal faces intense regulatory scrutiny and may face resistance from Hollywood unions due to expected cuts in production output.

If approved, the acquisition would also reshape consumer pricing dynamics. Experts predict Netflix subscriptions may become more expensive as the platform absorbs HBO Max content, while HBO Max itself could eventually be phased out or merged into Netflix’s ecosystem. Despite this, Netflix has attempted to reassure the industry with promises to preserve theatrical releases and maintain creative partnerships across Hollywood.

Warner Bros plans to complete the previously announced separation of its global networks division—which includes CNN and its sports and European free-to-air channels—before the Netflix takeover is finalized. Once the restructuring is complete, Netflix will inherit one of the richest libraries in the world and unprecedented influence over the future of television, cinema, and streaming.

If regulators approve the deal, Hollywood will never look the same again. Netflix’s takeover marks the beginning of a new era—one where the lines between old-school studios and digital streaming giants dissolve, and the future of entertainment is defined by scale, content dominance, and global reach.