Netflix Agrees To Purchase Warner Bros In Landmark Deal That Could Be Devastating For News Network

Netflix has announced a $72 billion deal to buy Warner Bros.’ studio and streaming assets, marking one of the largest entertainment mergers in history and signaling major changes ahead for the film and TV industry. The streaming giant made the announcement Friday morning after winning a competitive bidding process with a $27.75-per-share offer to Warner Bros. Discovery, the parent company of Warner Bros. studios and HBO Max.

The deal will allow Netflix to take over a massive content library that includes classics like Casablanca and Citizen Kane, along with modern hits such as Harry Potter, The Big Bang Theory, and Friends. It also includes the entire HBO catalog and popular franchises in the DC Universe. Netflix CEO Ted Sarandos said the merger will combine “culture-defining titles” from both companies and help shape “the next century of storytelling.”

The acquisition is expected to close sometime between the third quarter of 2026 and early 2027, pending regulatory approval. Both companies say they are confident the deal will be approved, although it is likely to face antitrust scrutiny due to concerns about market share.

While the deal marks a major win for Netflix, it also raises questions for other parts of Warner Bros. Discovery, especially CNN. The news network will not be included in the sale. Instead, it will move to a new company, Discovery Global, along with TNT Sports, Discovery+, and Bleacher Report. Warner Bros. Discovery had already planned to spin off these cable and digital properties, which have reportedly been weighing down the company’s stock performance.

CNN’s future now appears uncertain, especially after facing continued declines in TV ratings and ad revenue. The channel’s main rival, MS NOW — the rebranded version of MSNBC — was also spun off into its own new company earlier this year by Comcast. These shifts reflect the challenges traditional cable news channels are facing as more viewers turn to streaming and digital platforms for news and entertainment.

The bidding process also included a major offer from Paramount, which had shown interest not only in Warner Bros. but also in CNN. Paramount is now controlled by David Ellison, the 42-year-old son of Oracle founder Larry Ellison. After his company Skydance bought Paramount and CBS News, Ellison had reportedly explored the idea of acquiring CNN as well.