In a transformative move set to redefine Hollywood’s landscape, Netflix has announced its purchase of Warner Bros.’ studio and streaming divisions for a staggering $72 billion. The streaming behemoth revealed this groundbreaking acquisition plan on Friday, following a triumphant bid of $27.75 per share made to Warner Bros. Discovery, effectively closing a competitive bidding battle with Paramount and Comcast, the parent companies of CBS News and NBC News, respectively.

Expressing enthusiasm over the deal, Netflix co-CEO Ted Sarandos remarked that the acquisition aligns with their goal to captivate global audiences. He highlighted the merger’s potential to blend Warner Bros.’ iconic collection, featuring classics like “Casablanca” and “Citizen Kane,” alongside contemporary hits like “Harry Potter” and “Friends,” with Netflix’s own trendsetting series such as “Stranger Things,” “KPop Demon Hunters,” and “Squid Game.” Sarandos emphasized the enhanced ability to deliver beloved content while shaping the future of storytelling. The deal is anticipated to reach completion by the third quarter of 2026, according to both companies.

However, this strategic move presents challenges for CNN, a division still under Warner Bros. ownership. As Netflix takes control of Warner Bros.’ studio and HBO Max over the next 12 to 18 months, Discovery will advance with its spinoff, Discovery Global. Meanwhile, CNN and other cable networks like TNT will transfer to the new entity. CNN’s competitor, now rebranded as MSNBC after a similar divestiture, has faced ongoing struggles with dwindling viewership and ad revenue, casting a shadow over its future in an evolving television landscape.

Netflix, meanwhile, appears to be in a much better place – now set to absorb a massive portfolio of franchises that includes the DC Universe, shows like The Big Bang Theory, and assets long associated with HBO along with its massive film library Netflix’s already extensive catalogue will be overchaged in the process. The company reached an industry leading 301.6 million global subscribers this year, with that number now only set to grow. Rival studio Paramount placed bids to Warner Bros. Discovery in recent weeks, though they were not enough to sway Netflix.

Paramount, headed by 42-year-old tech scion David Ellison, also expressed interest in acquiring CNN. Paramount already owns CBS News. Ellison’s billionaire father, Larry Ellison, floated firing some of CNN’s top talent at the time, saying he would cut anchors like Brianna Keilar and Erin Burnett if his son was able to acquire Warner Bros Discovery in full, according to The Guardian. Ellison also reportedly pondered a programming change that would have put 60 Minutes on CNN.

The report sparked chatter across the halls of CNN’s NYC headquarters in Hudson Yards, Status reported at the time. Netflix’s planned merger with Warner Bros., meanwhile, is still set to face a final hurdle in the form of scrutiny from antitrust officials. Many have expressed concerns about such a company, saying it would have too big a market share. But Warner Bros. Discovery and Netflix both maintained Friday that the deal will be signed-off on last next year.

Warner Bros Discovery’s David Zaslav said in a statement: ‘Today’s announcement combines two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most. ‘For more than a century, Warner Bros. has thrilled audiences, captured the world’s attention, and shaped our culture. ‘By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come.’

The newly separated Discovery Global, meanwhile, will be comprised of CNN, TNT Sports, and digital products including Discovery+ and Bleacher Report. It’s set to be led by WBD’s current CFO, Gunnar Wiedenfels. Together, he and Zaslav have managed to strip some $21billion of Warner Bros Discovery’s once $55billion debt, following the 2022 merger between Warner Bros and Discovery. Back in January, after 200 staffers were laid off from CNN’s TV division, a source told the Daily Mail that the move was made because the company had become ‘bloated’ and overstaffed with people who do the bare minimum after the merger.

The mole added that the network is ‘very duplicative’ – with many workers whose roles closely overlap – and that it is a ‘money pit.’ The deal comes a little over 15 years after then-Time Warner boss Jeff Bewkes expressed doubt about Netflix making waves in the industry to the New York Times interview, saying it was about as likely as being conquered ‘by the Albanian army.’