Netflix has acquired Warner Bros. Discovery in a deal valued at $82.7 billion, with Netflix paying $72 billion in equity and stock. Netflix will take over Warner Bros.’ film studio and HBO Max. The deal is expected to close in the third quarter of 2026, pending regulatory approval.

The merger between Netflix and Warner Bros. Discovery could face regulatory scrutiny due to the size of their streaming businesses. Netflix has over 300 million global subscribers, while Warner Bros. Discovery has 128 million. Paramount raised antitrust concerns earlier, questioning the fairness of the sale process favoring Netflix.

Paramount Skydance was an initial suitor for Warner Bros. Discovery, submitting three bids before the formal sale process began. Paramount raised concerns about the fairness of the sale process, accusing Warner Bros. Discovery of favoring Netflix. The deal is subject to regulatory approval and approval from WBD shareholders.

Netflix and Warner Bros. Discovery boards unanimously approved the deal, with each WBD shareholder set to receive $23.25 in cash and $4.50 in Netflix common stock for each share of WBD stock. If the deal falls through, Netflix would pay a $5.8 billion breakup fee, while Warner Bros. Discovery would pay $2.8 billion to pursue another merger.

Read more at CNBC: Netflix to buy Warner Bros. film and streaming assets in $72 billion deal