Netflix acquiring Warner Bros. studio in $72 billion deal. What it means for viewers

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FILE-In this photo illustration, a silhouetted individual is seen holding a mobile phone with the Netflix logo displayed in the background. (Photo Illustration by Mateusz Slodkowski/SOPA Images/LightRocket via Getty Images)

Netflix has agreed to a deal with Warner Bros. Discovery to purchase the Hollywood titan's studio and streaming business for $72 billion.

The deal, announced Friday, would merge two of the entertainment industry's largest companies in film and TV. 

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Warner owns HBO Max and DC Studios and Netflix has become one of the more popular streaming platforms best-known for its array of movie and series options for consumers, like "Stranger Things" and "Squid Game."

How does the deal impact viewers?

Dig deeper:

By merging the two companies, Netflix said in a release that this will create more viewing options for consumers between their streaming platform and the Warner Bros. film and television libraries as well as HBO and HBO Max programming. 

Additionally, popular TV shows and movies like "The Big Bang Theory," "The Sopranos," "Game of Thrones," "The Wizard of Oz" and the DC Universe will join Netflix’s catalog of programming including "Wednesday," "Money Heist," and "Bridgerton."

What does the deal mean for HBO Max subscribers?

Big picture view:

Netflix's announcement did not provide details of any official plans of what the merger may mean for HBO Max subscribers.

Forbes reported that Netflix co-CEO Ted Sarandos said on an investor call that HBO and its streaming service HBO Max, which features shows like "The White Lotus," and "The Last Of Us," will continue to operate as standalone services. But Netflix co-CEO Greg Peters said the company has "a lot of options to figure out how you package things in different ways."

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In June, Warner announced its intention to split its streaming and studio operations from its cable business plans for HBO, HBO Max, as well as Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, to become part of a new streaming and studios company.

The Associated Press reported that networks like CNN, Discovery and TNT Sports and digital products like the Discovery+ streaming service and Bleacher Report would make up a separate cable counterpart called "Discovery Global." 

Discovery Global will become a new publicly-traded company, in a process now expected to be completed in the third quarter of 2026.

Netflix-Warner Bros. deal

By the numbers:

According to the Associated Press, the deal is expected to close after Warner separates its Discovery Global cable operations into a new publicly-traded company in 2026.

The cash and stock deal is valued at $27.75 per Warner share, giving it a total value of $82.7 billion.

Separatetly, shares of Warner Bros. increased nearly 2% after U.S. markets opened Friday, while shares of Netflix dropped almost 2%. 

Netflix statement on Warner Bros. acquisition

What they're saying:

"Our mission has always been to entertain the world," Ted Sarandos, co-CEO of Netflix, said in a statement in a company release."By combining Warner Bros.’ incredible library of shows and movies—from timeless classics like "Casablanca" and "Citizen Kane" to modern favorites like Harry Potter and Friends—with our culture-defining titles like "Stranger Things," "KPop Demon Hunters" and "Squid Game," we'll be able to do that even better. Together, we can give audiences more of what they love and help define the next century of storytelling."