Warner Bros. Discovery (WBD) to be acquired by Netflix (NFLX) for $72 billion

Netflix (NFLX) has entered into a definitive agreement to acquire Warner Bros. Discovery (WBD) in a cash and stock transaction worth $72 billion was perhaps the most widely discussed happening today. 

• Paramount Skydance (PSKY), which also submitted a bid for WBD traded sharply lower, with CNBC reporting that the company is considering taking a direct bid to WBD's shareholders. 
• If approved, this marks Netflix’s transformation from streaming disruptor to Hollywood establishment power. But the move could trigger the defining antitrust battle of the streaming era, testing whether regulators will allow one company to dominate both content creation and distribution at this scale.

The details:

Netflix would acquire Warner Bros.’ film and TV studios plus HBO and Max, in a transaction valuing the business at about $82.7B. The combined entity would merge Netflix’s 300M+ subscribers with WB’s century-old legacy and franchises like Harry Potter, DC titles, and HBO series. The deal faces intense regulatory scrutiny, with the Directors Guild of America and exhibition groups already warning of dire consequences for filmmaking. Netflix is offering a $5B breakup fee if regulators block the deal, signaling its commitment despite antitrust concerns.

Paramount Skydance Corporation (PSKY)

David Ellison (son of Oracle co-founder Larry Ellison) founded Skydance Media in 2010 with a vision to create premium, franchise-driven content. His leadership and financial backing transformed it into a major independent studio, culminating in the 2025 merger with Paramount Global to form Paramount Skydance Corporation (PSKY).