Netflix announced on Friday that it had reached an agreement to acquire parts of Warner Bros. Discovery, swiftly ending a dramatic bidding process that included Paramount–Skydance and Comcast, both of which had pursued the storied media assets.

The companies said the deal involves cash and stock, valuing Warner Bros. Discovery shares at $27.75 each, placing the transaction at $72 billion in equity value and roughly $82.7 billion in enterprise value.

Under the agreement, Netflix will acquire the Warner Bros. film studio and the HBO Max streaming service. Warner Bros. Discovery will continue executing the planned separation of Discovery Global, which includes its broad portfolio of pay-TV networks such as TNT and CNN.

The deal brings together Netflix — the streaming giant that has reshaped the media industry in recent years — and Warner Bros., a historic studio behind iconic works such as *The Wizard of Oz*, the *Harry Potter* series, and the DC Comics universe, alongside premium HBO Max content including *The Sopranos* and *Game of Thrones*.

Netflix co-CEO Ted Sarandos told investors Friday morning: “I know some of you were surprised we made this move, and I completely understand. For years we’ve been known as builders, not buyers. But this is a rare opportunity… and it will help us advance our mission to entertain the world and bring people together through great stories.”

The acquisition is expected to close after the separation of the television networks, a process now anticipated in the third quarter of 2026. The companies estimate that closing will take 12 to 18 months.

At completion, each Warner Bros. Discovery shareholder will receive $23.25 in cash and $4.50 in Netflix common stock for each WBD share held.

Both boards approved the agreement unanimously, though it remains subject to regulatory clearance and a WBD shareholder vote.

Netflix committed to a $5.8 billion reverse termination fee if the transaction fails to secure required approvals, according to an SEC filing. Warner Bros. Discovery would owe a $2.8 billion breakup fee if it cancels the agreement to merge with another bidder.

Competition With Paramount

The deal may face regulatory scrutiny due to the scale of both companies’ streaming operations. Netflix last reported over 300 million global subscribers by the end of 2024, while WBD had 128 million as of September 30.

The Wall Street Journal reported that Paramount raised antitrust concerns in a letter to WBD this week as part of its own bid submission.

Paramount–Skydance, owned by David Ellison, was the first to express interest in September and submitted three offers before WBD formally launched a sale process. It was the only bidder offering to buy *all* WBD assets — including streaming, film, and TV networks.

Sources told CNBC that Paramount’s final cash bid reached $30 per share on Thursday night, with a $5 billion breakup fee if regulators did not approve the deal within roughly ten months.

Paramount argued earlier this week that WBD “abandoned any pretense of a fair process,” favoring Netflix instead.

A Sudden Turn in the Bidding

For weeks, Paramount appeared the frontrunner in the WBD auction. Executives were confident in their full-company bid and maintained what they described as a “mutually beneficial” relationship with President Donald Trump.

But Netflix shocked the industry with bold, last-minute offers that pushed it ahead, according to people familiar with the negotiations.

Sarandos acknowledged the surprise in his call with analysts Friday, noting that many media mergers fail because acquirers do not understand what they are buying — a risk he said Netflix does not face.

He added that failed deals often involve companies attempting to buy growth after their core business has stalled, something he said does not apply to Netflix given its continued subscriber and earnings momentum.

Antitrust Concerns Loom

A source told CNN that Netflix agreed to a breakup fee comparable to Paramount’s — signaling its confidence but also underscoring the regulatory risk.

Several U.S. lawmakers have already voiced concern about rising market concentration.

Senator Mike Lee wrote on X: “This should ring alarm bells for antitrust authorities worldwide.”

In recent weeks, Paramount had been viewed as the preferred buyer by the Trump administration, and the company repeatedly questioned whether Trump-aligned regulators would approve a Netflix deal.

Analysts now anticipate a broad political and legal battle, not only in the United States but also in Europe, where competition authorities have increasingly strict oversight of media consolidation.

During Friday’s briefing, Netflix executives outlined their initial regulatory argument, emphasizing complementarities and claiming the deal would create “more opportunities for the creative community.”

Co-CEO Greg Peters said: “Warner Bros. has shaped entertainment for more than a century. With our global scale and proven model, we can introduce its worlds to a wider audience — giving members more choice, attracting new viewers, strengthening the industry, and creating greater value for shareholders.”

Skepticism in Hollywood

Cinema operators and industry figures reacted with caution.

United Cinemas, a major theater group, said the merger poses an “unprecedented threat” to the global exhibition sector, citing Netflix’s history of limited theatrical releases.

Netflix responded that it intends to “maintain and build upon” Warner Bros.’ theatrical operations.

A merger of Netflix and HBO would bring an end to one of the defining media rivalries of the past decade. A recent Bank of America analysis stated: “If Netflix acquires Warner Bros., the streaming wars are effectively over. Netflix becomes the undisputed global superpower in Hollywood.”

If you'd like, I can also prepare a shorter markets-focused version or a bullet-point investor brief.

U.S. equities moved higher on Friday after weaker inflation figures strengthened expectations that the Federal Reserve will cut interest rates at its upcoming meeting.

Fresh data showed that the core Personal Consumption Expenditures (PCE) price index — which excludes food and energy — rose 2.8% year over year in September, slightly below expectations of 2.9%. On a monthly basis, the index increased 0.2%, in line with forecasts.

The headline PCE index, which includes more volatile components, climbed to 2.8% year over year from 2.7% in August, while the monthly pace held steady at 0.3%.

According to CME Group’s FedWatch tool, markets are pricing in an almost 89% probability of a 25-basis-point cut at the Fed’s next policy meeting.

In market trading as of 16:15 GMT, the Dow Jones Industrial Average rose 0.4% (183 points) to 48,034. The S&P 500 gained 0.5% (31 points) to 6,888, while the Nasdaq Composite advanced 0.6% (137 points) to 23,642.

Netflix shares slipped on Friday after the company announced a major deal to acquire Warner Bros’ film assets as well as its streaming operations.

The company said it reached an agreement to purchase significant parts of Warner Bros Discovery, swiftly ending a dramatic bidding race that also included Paramount–Skydance and Comcast, both of which had pursued the historic assets.

According to the two companies, the deal consists of cash and stock, valuing Warner Bros Discovery shares at $27.75 each. This places the market value of the acquisition at $72 billion, with an enterprise value of roughly $82.7 billion.

Under the agreement, Netflix will take ownership of the Warner Bros film studio and the HBO Max streaming service. Warner Bros Discovery will continue with its planned separation of Discovery Global, which includes its broad portfolio of pay-TV networks such as TNT and CNN.

The landmark transaction brings together Netflix—the streaming giant that reshaped the media industry over the past decade—and Warner Bros, the legendary studio behind cultural touchstones such as *The Wizard of Oz*, the *Harry Potter* franchise, and the DC Comics universe. It also includes HBO Max titles like *The Sopranos* and *Game of Thrones*.

As for trading, Netflix shares were down 0.3% at $102.8 as of 14:56 GMT.

Copper soared to a fresh all-time high of $11,540 per metric ton on the London Metal Exchange (LME) on Friday, as mounting concerns that the United States may extend its tariff package to include refined copper fueled a sharp rally.

Market anxiety over tightening supply and rising delivery requests continues to threaten further withdrawals from LME inventories, keeping upward pressure on prices, according to Thu Lan Nguyen, head of FX and commodity research at Commerzbank.

U.S. Tariff Risks Raise Supply Fears

Nguyen noted that copper’s latest surge reflects growing fears of near-term supply shortages triggered by potential new U.S. duties on refined copper imports.

Earlier this year, the Biden administration surprised markets when it initially excluded refined copper from a 50% tariff, applying the measure only to semi-manufactured copper products. The decision drove Comex copper prices sharply lower and allowed LME inventories to recover as large volumes were redirected to the U.S. in anticipation of tighter trade rules.

Now, expectations that Washington may eventually broaden the tariff scope are reviving concerns that stocks could once again be pulled out of the LME to meet U.S. demand — a worry magnified by a recent spike in delivery requests.

Nguyen added that although the U.S. Commerce Secretary originally proposed a phased-in tariff on refined copper, beginning only in 2027, the administration could accelerate implementation. The initial intention, she said, was likely to give domestic producers time to expand capacity.

But with U.S. Geological Survey data showing that domestic production currently covers only about half of national consumption, any policy acceleration — combined with continued inventory drawdowns — heightens the risk of additional price spikes.

Meanwhile, the U.S. dollar index edged down by less than 0.1% to 98.9 as of 14:28 GMT, after trading between 98.8 and 99.07.

In U.S. trading, March copper futures rose 1% to $5.43 per pound as of 14:26 GMT.