In a landmark move, Netflix has reached an agreement with Warner Bros Discovery to acquire the storied Hollywood company’s studio and streaming divisions for a substantial $US72 billion (approximately $108 billion AUD).

This strategic acquisition, revealed overnight, unites two titans of the entertainment industry. Warner Bros Discovery brings with it prestigious brands like HBO Max and DC Studios, while Netflix, a household name in streaming, has carved out a substantial niche in original content with hits such as Stranger Things and Squid Game.

The transaction, involving both cash and stock, values Warner shares at $US27.75 each, culminating in a total enterprise valuation of around $US82.7 billion (about $124.55 billion AUD). The deal is anticipated to finalize following Warner’s spin-off of its Discovery Global cable operations into a new publicly traded entity by the third quarter of 2026.

This announcement concludes a protracted bidding war over Warner Bros Discovery, with competition intensifying since the northern hemisphere autumn. Netflix’s interest was matched by Comcast, NBC’s parent company, and Skydance-owned Paramount, which had recently completed an $US8 billion merger in August. Paramount, backed by CEO David Ellison’s family, made several substantial all-cash offers.

For a while, Paramount appeared to lead the race, particularly as it expressed interest in acquiring Warner’s entire suite, including its cable division featuring networks like CNN and Discovery, unlike its rivals Netflix and Comcast.