In a move set to reshape the global media landscape, streaming giant Netflix has announced its acquisition of Warner Bros. Discovery in a groundbreaking deal valued at an enterprise value of $82.7 billion. The agreement, one of the largest in Hollywood history, includes the coveted HBO Max streaming service and the legendary HBO studio.
This acquisition solidifies Netflix’s dominance in the streaming wars by integrating iconic franchises like DC Comics, “Game of Thrones,” and “Harry Potter” into its already extensive content library. The deal aims to combine Netflix’s massive global subscriber base of over 300 million with HBO Max and Discovery+’s joint user base of approximately 128 million.
The Financials of a Megadeal
The scale of Netflix’s offer is particularly notable. The company is investing $72 billion in a mix of cash and stock, a figure that surpasses Warner Bros.’ entire market valuation of $60 billion. This aggressive move comes after Warner Bros. Discovery officially put itself up for sale in October, burdened by significant debt and underwhelming streaming growth.
While several companies showed interest, with Paramount once considered a frontrunner, Netflix emerged with the winning bid. The transaction is expected to be finalized in the third quarter of 2026, following a planned separation of Discovery Global’s pay TV networks like TNT and CNN.
Regulatory Hurdles on the Horizon
The merger is not without its challenges and is expected to face intense antitrust scrutiny. Concerns have already been raised by U.S. senators, including Elizabeth Warren, Bernie Sanders, and Richard Blumenthal, who previously sent a letter to the Justice Department warning that any such agreement would be viewed “under a cloud of political favoritism and corruption.”
Industry pushback is also mounting, with reports of anonymous groups sending letters to Congress urging them to publicly oppose the deal. These regulatory hurdles will be a critical factor in the 12 to 18-month timeline projected for the deal’s completion.
What This Means for MENA
For the MENA tech and media ecosystem, this consolidation has significant implications. The creation of a single, content-rich streaming superpower will intensify pressure on regional players like Shahid and OSN+. These platforms will need to double down on hyper-local content and unique value propositions to retain and grow their subscriber base against a globally dominant competitor.
Furthermore, this move could signal a new phase of content investment in the region. With access to Warner Bros.’ production capabilities, Netflix may accelerate its investment in MENA originals to cater to local tastes and drive growth in this key emerging market. For founders and VCs in the media-tech space, this megadeal serves as a powerful case study on market consolidation and the strategic importance of owning intellectual property (IP).
About Netflix
Netflix is one of the world’s leading entertainment services with over 300 million paid memberships in over 190 countries enjoying TV series, films, and games across a wide variety of genres and languages. Members can play, pause, and resume watching as much as they want, anytime, anywhere, and can change their plans at any time.
About Warner Bros. Discovery
Warner Bros. Discovery is a leading global media and entertainment company that creates and distributes the world’s most differentiated and complete portfolio of content and brands across television, film, and streaming. Available in more than 220 countries and territories and 50 languages, Warner Bros. Discovery inspires, informs, and entertains audiences worldwide through its iconic brands and products.
Source: TechCrunch
