Netflix announced plans to buy Warner Bros in a Ksh 10.73 trillion deal that will transmit shock waves through Hollywood and the broader media landscape following the discovery’s studio and streaming business.

The deal will also include debt and therefore the acquisition is expected to close thereafter.

Discovery carves out its cable unit, which the companies expected to be completed by the third quarter of 2026, showing a different public company controlling channels like CNN, TNT and Discovery.

How Warner Bros Will Boost Netflix

Currently, Netflix is the world’s largest streaming service with over 300 million subscribers and backing it up with Warner Bros will make it more convenient.

This development comes as Discovery assets would create greater leverage over theater owners and entertainment-industry unions and forcing smaller companies to merge.

Instead of buying movie studios, big tech companies have mostly grown themselves inside Hollywood.

In 2022, Amazon bought Metro‑Goldwyn‑Mayer (MGM) at KSh 1.1 trillion, which owns big film series like James Bond and Rocky.

“Together, we can give audiences more of what they love and help define the next century of storytelling,” Ted Sarandos, Netflix’s co-chief executive, said in a statement.

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What Made the Deal Happen and Potential Bidders

There was a bidding war that included Netflix, Comcast and Paramount, but Netflix submitted the highest bid.

Meanwhile, the pitch from Netflix was notable in part because it included a pledge to continue theatrical releases for movies from Warner Bros. Discovery.

This is a crucial step for Netflix, a company that transformed home entertainment and has until now been cautious about fully committing to theatrical releases.

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How Netflix’s Bid Got Many at Surprises

Even though Netflix has never tried to buy something larger than this before.

Many in the industry were surprised to see Netflix emerge as a strong bidder for Warner Bros. Discovery’s assets, since it goes against the company’s usual way of operating.

“We come from a deep heritage of being builders rather than buyers,” a co-chief executive, Greg Peters, said in October at the Bloomberg Screentime conference in Los Angeles.

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