Netflix strikes a deal to buy Warner Bros. Discovery for more than $80 billion

Netflix has struck a deal to buy the film studio and streaming business of Warner Bros. Discovery, putting an end to one of the most competitive bidding wars in media.

The streaming giant said Friday that it will pay $27.75 per share for the divisions, making it an $82.7 billion deal. Netflix's bid was mostly cash, according to earlier reports. Warner Bros. Discovery will still spin off its TV networks, including CNN and TNT, into a separate company. The deal is expected to close no sooner than the third quarter of next year, and could still face intense government scrutiny.

Netflix beat out competing bids from Paramount Skydance and Comcast to buy Warner Bros. Discovery.

“Our mission has always been to entertain the world,” Ted Sarandos, Netflix's co-CEO, said in a statement. “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.”

Warner Discovery CEO David Zaslav added, “By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come.”

Lawmakers have already warned they have concerns that by combining Netflix and HBO Max, the new streaming service could have a lopsided amount of power in the streaming space. Sen. Elizabeth Warren of Massachusetts called it "an anti-monopoly nightmare" in the making.

“A Netflix-Warner Bros. would create one massive media giant with control of close to half of the streaming market — threatening to force Americans into higher subscription prices and fewer choices over what and how they watch, while putting American workers at risk," Warren said in a Friday statement.

The deal could also impact the theatrical film market, as it's unclear if Netflix will continue to release films to theaters after commitments previously made by Warner Bros. Discovery are met.

Former CEO of WarnerMedia Jason Kilar posted on X that he could not think of "a more effective way to reduce competition in Hollywood than selling WBD to Netflix."

"Netflix has stated that it would honor those theatrical obligations. However, significant concerns remain within the industry and among government officials," Wedbush Analyst Alicia Reese wrote in a note to investors. "Shares of theater exhibitors, including Cinemark, AMC, and Marcus, have declined recently on concerns about a Netflix win, given the possibility that Netflix would attempt to significantly shorten the theatrical window or bypass it altogether for most titles."

Netflix stock was down 2% in pre-market trading on Friday. Warner Bros. Discovery stock was up 2%.

— Joseph Zeballos-Roig contributed to this article.