• Netflix has agreed to acquire Warner Bros Discovery for $82.7 billion.
• The deal values Warner Bros at approximately $27.75 per share.
• It will include major franchises like Harry Potter and Game of Thrones.
• Netflix aims to enhance its streaming content and production capabilities.
• The acquisition faces potential antitrust scrutiny from regulators.

Netflix announced an agreement to acquire Warner Bros Discovery for a staggering $82.7 billion, marking a significant move in the entertainment industry. This deal, which gives Netflix access to Warner Bros' film and television studios along with HBO and HBO Max, is seen as a transformative moment for both companies. The acquisition values Warner Bros at approximately $27.75 per share, showcasing the strategic importance of this merger in reshaping Hollywood's landscape according to BBC, Business Insider, and Dawn.

The cash-and-stock deal will not only bolster Netflix's offerings with iconic franchises such as Harry Potter, Game of Thrones, and the DC Universe, but also amalgamate its well-known titles like Stranger Things and Squid Game. Netflix's co-CEO, Ted Sarandos, emphasized that combining resources with Warner Bros will enhance storytelling capabilities and better serve global audiences according to India Times and ABC News.

However, the deal is expected to face rigorous antitrust scrutiny from regulatory bodies in both Europe and the U.S., as it would unite two of the largest entities in the streaming space. Critics have expressed concerns that the merger could detrimentally affect the theatrical landscape, with Cinema United's CEO voicing that it represents an unprecedented threat to cinemas globally according to HuffPost and South China Morning Post.

Moreover, under the terms of the agreement, Warner Bros Discovery's shareholders will receive $23.25 in cash and $4.50 in Netflix stock per share upon the deal's closure. The acquisition's finalization is expected in the third quarter of 2026, following a planned spin-off of Discovery's cable networks into a separate entity called Discovery Global according to India Times and NPR.