Netflix announced on Friday that it reached an agreement to acquire Warner Bros. Discovery (WBD). This move ends a long bidding process that also involved Paramount Skydance and Comcast, both of which tried to buy the company’s assets.

A Major Shift in Hollywood

With this deal, one of Hollywood’s oldest and most valuable entertainment companies passes into the hands of Netflix, the streaming pioneer that transformed the industry. The agreement includes cash and stock and values WBD at 27.75 dollars per share. This brings the total value of the transaction to about 82.7 billion dollars.

What the Deal Includes

The acquisition covers the Warner Bros. film studios and the HBO Max streaming service. Warner Bros. Discovery will still continue with its plan to separate its television networks, including TNT and CNN. This spin-off must be completed before the acquisition closes, and it is now expected to finish in the third quarter of 2026.

Market Reaction

Before the market opened on Friday, Netflix shares dropped around 3 percent. The newly formed Paramount Skydance saw a decline of about 2 percent. WBD shares fell by roughly 1 percent, while Comcast shares remained unchanged.