Netflix stunned Wall Street this week, abruptly stepping aside in what was shaping up to be one of the largest media takeovers in modern history. After months of negotiations, boardroom maneuvering, and political scrutiny, the streaming giant officially walked away from its planned acquisition of Warner Bros. Discovery, clearing the runway for a rival bidder to seize control of one of Hollywood’s most iconic empires.
The dramatic reversal marks a turning point in a corporate battle that could reshape the entertainment industry for years to come.
Back in December 2025, Netflix and Warner Bros. Discovery had inked what was billed as a transformative agreement. Under that arrangement, Netflix would have absorbed Warner Bros.’ film and television studios, HBO, and HBO Max in a deal valued at roughly $82.7 billion in enterprise value, including $72 billion in equity. Shareholders were set to receive $27.75 per share, broken down into $23.25 in cash and $4.50 in Netflix stock.
The deal was structured as a mix of cash and stock and was designed to close after Warner Bros. Discovery spun off its Global Networks division into a separate publicly traded entity. That separation was expected sometime in the third quarter of 2026. At the time, industry analysts described the merger as a bold consolidation play aimed at fortifying Netflix’s dominance in the streaming wars.
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