Netflix said on Dec. 5 it will buy Warner Bros Discovery’s film studio and streaming business in a deal valued at 82.7 billion dollars.

The acquisition combines cash and stock. It is expected to close in the third quarter of 2026 after Warner completes a spin-off of its cable operations. CNN, TNT and Discovery Channel will be managed by a separately listed company.

Netflix, which has more than 300 million paying subscribers, will gain stronger negotiating power with theatre chains, content creators and actors unions.

The New York Times said the deal marks the peak of a trend in which tech companies move into Hollywood after Amazon acquired MGM.

The acquisition followed a fierce bidding contest with Comcast and Paramount. The New York Times said Netflix offered mostly cash and pledged to maintain theatrical releases, which helped win Warner’s support.

The New York Times added that Netflix’s move is unprecedented for a company that has focused on direct production.

Netflix co-CEO Ted Sarandos said, “We cannot remain complacent in an era of wider user choice,” adding that the combination with Warner Bros is a strategic step for Netflix’s long-term competitiveness.

Some critics say the deal threatens the cinema industry and raises monopoly concerns in streaming. Some filmmakers sent a letter to Congress expressing concern that Netflix views theatres as competitors.