New Delhi | Dec 06, 2025

Netflix has officially snapped up Warner Bros Discovery in a jaw-dropping $72 billion deal, a move that has stunned Hollywood and left rivals Paramount and Comcast blinking in disbelief. What began as a casual attempt to understand the studio’s business quietly turned into one of the biggest entertainment shake-ups of the decade.

According to people familiar with the talks, Netflix first approached Warner Bros Discovery out of curiosity. But that curiosity didn’t last long. Once Netflix’s team dug into the details, they realised they were staring at a once-in-a-generation chance to grab a legendary studio with a century’s worth of films, shows and franchises that remain evergreen. Insiders say library content still drives around 80% of streaming watch time, making this treasure chest irresistible.

The deal comes after Warner Bros Discovery kicked off an auction on October 21. The company had already brushed aside three unsolicited offers from Paramount Skydance, but Netflix’s interest added new energy to the race. Even though Netflix had shrugged off speculation about buying a studio just weeks earlier, the moment the bidding opened, they jumped into action.

People involved in the process say Netflix was especially attracted to Warner Bros’ strengths in theatrical distribution and movie promotion. The studio machinery would neatly complement Netflix’s digital experience. The company also saw big upside in folding HBO and HBO Max into its ecosystem, and insiders believe Netflix’s long-earned streaming knowledge could help HBO grow faster than it has in years.

The spark for all this came earlier in June, when Warner Bros Discovery announced plans to split into two publicly traded companies. One would hold the fading but still profitable cable TV networks, while the other would contain the heart of the business — Warner Bros studios, HBO and the streaming arm. It was this second unit that caught Netflix’s eye.

Things heated up through autumn, with Netflix competing directly with Paramount and Comcast. Paramount actually made the first move in September with an offer that kept rising, eventually touching $78 billion in equity value. But while the number looked impressive on the surface, Warner Bros board reportedly worried about how Paramount planned to finance it.

Around the same time, JPMorgan advisers were quietly urging Warner Bros Discovery CEO David Zaslav to consider flipping the order of the planned company split. If the company first separated the Discovery cable assets, it would gain more freedom — including the freedom to sell the studio and streaming assets outright. This flexibility became crucial as interest from giants like Netflix grew stronger.

Netflix’s internal team, supported by advisers from Moelis & Company, Wells Fargo and the law firm Skadden, worked almost nonstop through October and November. Sources say they held morning calls every day for two months, even working through Thanksgiving week — including on Thanksgiving Day itself — to make sure their offer was bulletproof before the December 1 deadline.

Meanwhile, Warner Bros Discovery’s board held daily meetings in the eight days leading up to the decision. On Thursday, Netflix submitted what insiders described as the only offer that was truly binding and fully prepared. That gave them a decisive edge.

Comcast tried to pitch a merger of its entertainment division with Warner Bros Discovery, which could have created a giant big enough to rival Disney. But the board felt the plan would take years to come to life, delaying any meaningful benefit. They preferred Netflix’s cleaner, faster path.

To calm any nerves about the long road of regulatory approvals ahead, Netflix added an eye-watering sweetener — a breakup fee of $5.8 billion. Advisers said this was one of the largest such fees ever offered, and a bold sign that Netflix believed it would clear all hurdles.

Even then, one Netflix executive privately admitted they felt they only had a 50-50 chance of winning. But late Thursday night, when the confirmation came in, the mood shifted instantly. Cheers and claps erupted on the group call — Netflix had pulled it off.

And just like that, the streaming pioneer who once disrupted TV has now bought one of Hollywood’s most iconic homes. The question now is not whether this will shake the industry — but how far the tremors will travel.

 How Netflix Pulled Off a Hollywood Shocker That No One Saw Coming

Netflix has officially stunned Hollywood by buying Warner Bros Discovery in a massive $72 billion deal, and the whole story behind it feels straight out of a movie plot. What started as Netflix simply trying to understand how the studio worked turned into one of the biggest entertainment shake-ups in years. Once Netflix saw the value of Warner Bros’ huge library of films and shows — the kind that people watch again and again — they knew this was a rare chance they couldn’t pass up.

The bidding began on October 21 after Warner Bros Discovery rejected three offers from Paramount Skydance. Even though Netflix had previously brushed off talk of acquiring a studio, they jumped into the race the moment the auction opened. The more they learned, the more they realised that Warner Bros’ theatres, studio power, HBO and HBO Max could fit perfectly with Netflix’s streaming experience.

Paramount tried hard to outbid everyone, even raising their offer close to $78 billion, but concerns about financing slowed them down. Comcast also made a pitch to merge its entertainment arm with Warner Bros Discovery, but that plan would take years to complete.

Netflix, on the other hand, came prepared with a clean and complete offer. Their team worked nonstop through October and November — even holding calls on Thanksgiving — to make sure nothing was left to chance. They even offered a massive $5.8 billion breakup fee to show they were serious about passing regulatory checks.

Late Thursday night, the news finally dropped: Netflix won. Cheers reportedly broke out on their team call. And just like that, Netflix didn’t just change its future — it changed Hollywood’s.