Warner Bros. merger topper

Netflix has agreed to buy Warner Bros. Discovery, an unprecedented $72 billion deal between a streaming media giant and a venerated Hollywood studio that will shake up the entertainment industry.

In the agreement announced Dec. 5, Netflix will buy Warner Bros. Discovery’s TV and film studios and streaming division, including HBO and HBO Max. The pact includes notable movie properties such as Harry Potter, Batman and Superman, and TV classics such as "Friends" and "The Big Bang Theory."

Learn more: How deal with reshape streaming landscape

The cash deal, subject to regulatory approval, will close after Warner Bros. Discovery spins off its cable channels next year.

Regulatory permission may not come easily. The Trump administration views the deal with “heavy skepticism,” according to CNBC.

How does Netflix-Warner Bros. deal compare with others?

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The merger is among a number of significant deals between tech companies and traditional Hollywood entities.

"This is a rare opportunity that's going to help us achieve our mission to entertain the world and bring people together through great stories," Netflix co-CEO Ted Sarandos said in a conference call with investors.

The deal was reached after a weekslong bidding war. Netflix took the lead with a nearly $28-a-share offer that eclipsed Paramount Skydance's nearly $24-a-share bid for the whole of Warner Bros Discovery, including the cable TV assets slated for a spinoff.

Netflix will get Warner content; it won't get cable shows

The deal is expected to close within 12 to 18 months, Sarandos said, after Warner Bros. Discovery spins off its global networks unit, Discovery Global, which includes CNN, TBS, TNN and other channels, into a separate listed company. That's expected in the third quarter of 2026.

Who opposes the Netflix deal?

David Ellison, CEO of Paramount Skydance, met with Trump officials and lawmakers Dec. 3 to make a case against the deal, the New York Post reported. Ellison is the son of Oracle CEO and billionaire Larry Ellison, who is close to Trump.

The deal is likely to face strong antitrust scrutiny in Europe and the U.S., according to Reuters. It would give the world's biggest streaming service ownership of a rival that is home to HBO Max and boasts nearly 130 million streaming subscribers.

Netflix has offered a $5.8 billion breakup fee if the deal isn't approved by regulators. In turn, Warner Bros. Discovery will pay Netflix $2.8 billion if it delays or calls off the deal, the Guardian reported.

AT&T acquired Warner Bros. in its merger with Time Warner in 2018. AT&T spun off WarnerMedia and merged it with Discovery in 2022. Warner Bros. Discovery put itself up for sale in October 2025.

CONTRIBUTING Mike Snider

SOURCE USA TODAY Network reporting and research; Reuters

This article originally appeared on USA TODAY: Netflix agrees to buy Warner Bros. Here's what that will look like

Reporting by George Petras and Alberto Cuadra, USA TODAY / USA TODAY

USA TODAY Network via Reuters Connect