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The Story
Picture this. It’s 2010. Jeff Bewkes, the CEO of Time Warner, is sitting across from a New York Times reporter, casually dismissing Netflix as a threat to his entertainment empire. His words? “It’s a little bit like, is the Albanian army going to take over the world? I don’t think so.”
Fast forward to December 2025. The Albanian army just bought Warner Bros.
Netflix announced on Friday that it’s acquiring Warner Bros. Discovery’s crown jewels—the legendary film studio and HBO Max streaming service—for a staggering $82.7 billion. It’s the kind of deal that makes you do a double-take. Netflix, the company that once mailed DVDs to your doorstep, now owns the studio behind The Wizard of Oz, Harry Potter, Batman, and Game of Thrones.
Let’s unpack how we got here and what this seismic shift means for Hollywood, streaming wars, and your weekend binge-watching plans.
The Deal Breakdown
The numbers are eye-watering. Netflix is paying $27.75 per share of Warner Bros. Discovery stock—$23.25 in cold, hard cash and $4.50 in Netflix shares. The equity value sits at $72 billion, but when you factor in Warner Bros. Discovery’s debt, the total enterprise value balloons to $82.7 billion.
For context, that’s more than Disney paid for 21st Century Fox ($71 billion) and roughly equivalent to Microsoft’s acquisition of Activision Blizzard. This isn’t just big. It’s reshape-the-entertainment-landscape big.
Here’s what Netflix gets: Warner Bros. film studio (one of Hollywood’s oldest and most prestigious), HBO Max streaming service with nearly 130 million subscribers, and a content library that includes DC Comics, Looney Tunes, and prestige TV shows like The Sopranos and Succession.
Here’s what it doesn’t get: Warner Bros. Discovery’s cable TV networks like CNN, TNT, and Discovery Channel. Those are being spun off into a separate company called Discovery Global, expected to complete in Q3 2026. The Netflix deal will close 12-18 months after that spinoff.
But Wait, Why Is Netflix Buying Anything?
Great question. For years, Netflix has been famous for building, not buying. Ted Sarandos, Netflix’s Co-CEO, even acknowledged this on the investor call: “I know some of you’re surprised that we’re making this acquisition, and I certainly understand why.”
So what changed?
The Content Treadmill Problem: Netflix has spent obscene amounts creating original content—estimates suggest over $17 billion annually. But here’s the catch: you’re only as good as your last hit. Squid Game was massive. So was Stranger Things. But these shows come and go, and Netflix constantly needs fresh blockbusters to keep subscribers hooked and prevent them from churning.
The Gaming Ambition: Netflix has been dabbling in gaming with mixed results. Warner Bros. Discovery, however, has genuine gaming credentials. Their Harry Potter game, Hogwarts Legacy, generated over $1 billion in revenue. That’s the kind of proven success Netflix wants to replicate as it searches for growth beyond streaming.
The IP Goldmine: Warner Bros. brings decades of beloved franchises. Harry Potter, DC superheroes, Game of Thrones—these aren’t just shows and movies. They’re universes with merchandise potential, theme park opportunities, and built-in fanbases that span generations. Netflix has been creating IP. Now it’s buying it wholesale.
The Growth Plateau: Netflix’s stock is up only 16% this year after surging 80% in 2024. The company stopped disclosing subscriber numbers, which makes investors nervous. The password-sharing crackdown worked, but what’s next? Buying Warner Bros. gives Netflix a growth story to sell Wall Street.
The Bidding War
Netflix didn’t waltz in unopened. This was a proper Hollywood drama, complete with competing suitors and late-night negotiations.
Paramount Skydance, backed by David Ellison (son of Oracle billionaire Larry Ellison), kicked things off with unsolicited offers. They bid around $24 per share for the entire Warner Bros. Discovery, including those cable networks Netflix didn’t want. Comcast, parent company of NBCUniversal, also threw its hat in the ring.
But Netflix’s $27.75-per-share offer—a 121% premium over Warner Bros. Discovery’s stock price before takeover rumors began—blew everyone else out of the water. Paramount cried foul, alleging favorable treatment toward Netflix in the sale process. But money talks, and Netflix brought the biggest checkbook.
The deal includes some serious breakup fees too. If regulators block the acquisition, Netflix owes Warner Bros. Discovery $5.8 billion. If Warner Bros. Discovery gets cold feet and walks away to pursue another merger, it owes Netflix $2.8 billion. These aren’t casual commitments.
The David Zaslav Saga
Here’s where the story gets deliciously ironic. David Zaslav—known as “Zaz” in industry circles—orchestrated the Discovery-WarnerMedia merger in 2021, creating Warner Bros. Discovery. It was supposed to be his masterpiece, combining Discovery’s reality TV empire (90 Day Fiancé, Naked and Afraid) with WarnerMedia’s prestige assets (HBO, CNN, Warner Bros. studio).
The pitch was intoxicating: “better and more valuable together,” creating a “globally scaled growth company” that would deliver for Hollywood talent, Wall Street investors, and viewers worldwide. “We believe everyone wins,” Zaslav declared.
Fifty-five months later, it’s hard to find the winners. Hollywood endured cost cuts. Shareholders watched the stock crater. Viewers dealt with a streaming service that kept changing names (HBO Max became Max, because apparently two fewer letters solve everything).
One person did win, though: Zaslav himself, with a $51.9 million pay package last year, making him one of America’s highest-paid executives.
Now, less than four years after completing that merger, Zaslav is selling off the very assets he claimed would be “more valuable together.” The irony is thick enough to cut with a knife.
The Regulatory Minefield
Don’t expect this deal to sail through smoothly. Antitrust regulators in both the US and Europe will scrutinize this intensely.
The concerns are legitimate. Netflix is already the world’s biggest streaming service. Adding HBO Max’s 130 million subscribers creates a behemoth with over 400 million global subscribers. That’s unprecedented market concentration in streaming.
Cinema United, a global exhibition trade association, immediately called the deal an “unprecedented threat” to movie theaters worldwide. The fear? Netflix might reduce theatrical releases or shorten the exclusive cinema window, further hammering an industry still recovering from pandemic losses.
Netflix has tried to preemptively address some concerns, promising to continue releasing Warner Bros. films in theaters and arguing that bundling HBO Max with Netflix will lower costs for consumers. They’re also touting expected job creation and increased US production spending.
But here’s the thing about antitrust reviews: they’re unpredictable. The current regulatory environment is more skeptical of big tech acquisitions than any time in decades. Some members of Congress have already expressed concerns about the Netflix-Warner Bros. combination harming consumers and Hollywood competition.
The 12-18 month timeline after the cable spinoff suggests Netflix anticipates a lengthy regulatory battle. And with Paramount alleging preferential treatment and close ties to the Trump administration, expect political pressure too.
What This Means for You
If you’re a Netflix subscriber, here’s what could change:
More content, obviously: Suddenly, your Netflix subscription includes Game of Thrones, Friends, the entire Harry Potter saga, and DC superhero films. The combined library would be staggering.
Potential price changes: Netflix has promised bundling HBO Max will lower costs, but let’s be realistic—when has a major merger ever resulted in meaningfully lower prices? Expect eventual price increases as Netflix recoups its $82.7 billion investment.
Theatrical releases: Netflix has committed to continuing Warner Bros.’ theatrical distribution. This is actually significant because Netflix has historically resisted traditional cinema releases, frustrating filmmakers and theater chains alike.
Gaming integration: With Warner Bros.’ gaming success, expect more sophisticated game offerings tied to major franchises.
The Bigger Picture
This deal represents a fundamental shift in how entertainment works. For a century, movie studios ruled Hollywood. They made the content, controlled distribution, and collected the profits. Streaming upended that model, and now the streaming company has swallowed the studio.
It’s also a bet on consolidation. The streaming wars fractured content across a dozen services, frustrating consumers who essentially recreated the cable bundle they tried to escape. Netflix is betting that controlling more must-see content under one roof is the winning strategy.
The question is whether regulators, Hollywood, and consumers agree. Because unlike Jeff Bewkes’ dismissive comments 15 years ago, everyone now knows the Albanian army has arrived. And this time, they’re not leaving.
The next 12-18 months will determine whether Netflix’s audacious bet reshapes entertainment for the next century—or becomes a cautionary tale about overreach in the streaming age.
One thing’s certain: the deal of David Zaslav’s career just got eclipsed by the deal that sold his company.
