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Showcasing why Paramount recently fired off a flurry of letters to Warner Bros. Discovery (WBD)<\/a> as if it were Hogwarts admissions season, Netflix has won the bidding for a WBD merger.<\/p>\n Today, the streaming giant announced it will acquire WBD\u2019s streaming and studio assets in a deal valued at around $82.7 billion (with equity value of $72.0 billion). <\/p>\n In a statement<\/a>, Netflix said the deal is expected to close after WBD\u2019s planned split of its cable assets, including celebrity.land, TNT, HGTV, and Discovery+. The cable spinoff transaction is expected to close in Q3 2026. According to Netflix, its WBD transaction is expected to close in 12-18 months.<\/p>\n The news follows WBD essentially hanging a \u201cfor-sale\u201d sign on its assets in October, with Paramount, Comcast, and Netflix each vying for the business.<\/p>\n \u201cOur mission has always been to entertain the world,\u201d Ted Sarandos, co-chief executive (CEO) of Netflix, said in a statement. <\/p>\n He added: \u201cBy combining Warner Bros.\u2019 incredible library of shows and movies\u2014from timeless classics like\u00a0Casablanca\u00a0and\u00a0Citizen Kane\u00a0to modern favorites like\u00a0Harry Potter\u00a0and\u00a0Friends\u2014with our culture-defining titles like Stranger Things,\u00a0KPop Demon Hunters,\u00a0and\u00a0Squid Game, we\u2019ll be able to do that even better.\u201d\u00a0<\/p>\n Once completed, the deal will represent a seismic shift in the world of entertainment.<\/p>\n The purchase will give Netflix, already the largest streamer with more than 300 million subscribers, even more scale by bringing in HBO Max\u2019s library and its 128 million subscribers.<\/p>\n It would also make Netflix the owner of assets such as Harry Potter, Game of Thrones, the DC Universe, and WBD\u2019s historic movie studio. Despite Netflix\u2019s previous theater-adverse stance, the company said it expects to maintain the current operations of Warner Bros.<\/p>\n It also means more opportunities for Netflix\u2019s advertising.<\/p>\n Amy Reinhard, Netflix\u2019s ad president<\/a>, told ADWEEK in May that the streamer\u2019s biggest request from clients is to get advertisers closer to the content. With that in mind, the company has implemented AI to put advertisers within the worlds of shows and has created more brand deals that put brands within the IP. <\/p>\n With WBD\u2019s assets, Netflix could bring the worlds of Harry Potter and Game of Thrones to its advertising. Notably, WBD also already has its Storyverse ad offering, which allows brands to tap into its more nostalgic IP, such as When Harry Met Sally<\/a> or Friends.<\/p>\n <\/p>\n In an announcement, Netflix said the transaction should deliver $2 billion to $3 billion in cost savings annually by its third year. However, the company also noted that the deal will enhance Netflix\u2019s studio capabilities and expand U.S. production, creating more entertainment industry jobs.<\/p>\n The agreement will now face antitrust scrutiny in both the U.S. and Europe. Ahead of the announcement, Paramount Skydance<\/a> sent several letters to WBD, sharing concerns about the bidding process and calling it unfair.<\/p>\nA seismic shift<\/h4>\n