The Netflix logo is shown on one of their buildings in the Hollywood neighborhood of Los Angeles, California, U.S., December 2, 2025. REUTERS/Mike Blake

Dec 5 (Reuters) - Netflix has agreed to buy Warner Bros Discovery's TV, film studios and streaming division for $72 billion, a deal that would hand control of one of Hollywood's most prized and oldest assets to the streaming pioneer.

Buying the owner of marquee franchises, including "Game of Thrones", "DC Comics" and "Harry Potter", will further tilt the balance of power in Hollywood in favor of Netflix. But the deal is likely to face strong antitrust scrutiny in Europe and the U.S.

By the numbers:-

-- The deal values Warner Bros Discovery at $27.75 a share, or about $72 billion in equity, and $82.7 billion, including debt

-- Netflix has offered Warner Bros Discovery a $5.8 billion breakup fee, while Warner Bros Discovery would pay Netflix $2.8 billion if the deal collapses

-- Netflix said it expects to generate at least $2 billion to $3 billion in annual cost savings by the third year after the deal closes

JASON KILAR, FORMER WARNERMEDIA CEO, ON X

"If I was tasked with doing so, I could not think of a more effective way to reduce competition in Hollywood than selling WBD to Netflix."

ANTHONY SAGLIMBENE, CHIEF MARKET STRATEGIST AT AMERIPRISE FINANCIAL, DETROIT

"The largest factor of a deal of this size and complexity is the potential regulatory hurdles that these two companies are going to have to go through. But they obviously came to an agreement, thinking that it's worth the struggle. This move is a recognition that there's more optimism about the ability to get deals done. Both companies probably expect that they may need to sell assets to close the deal. And I think there's more than enough room for them to do that."

TOM HARRINGTON, HEAD OF TELEVISION AT ENDERS ANALYSIS, GREATER LONDON

"The regulatory possibility of this going through is hard to gauge given that much of it remains stateside and will pivot on the whims of the President... As such there will be resistance from parts of Hollywood and various unions. HBO, the creative jewel, would be terribly exposed within Netflix, although it has survived difficult owners for a lot of its existence."

"For consumers, this would likely result in rising costs: Netflix would get more expensive and even though HBO Max would be shuttered/become non-essential, the greater penetration of Netflix households would likely mean an increase in total overall subscription revenues."

ART HOGAN, CHIEF MARKET STRATEGIST AT B RILEY WEALTH, NY

"The thing that I find the most incredible about this deal is that Netflix is so confident in getting regulatory approvals that they're willing to put up a $5 billion breakup fee.

That is no small deal. That is a large bet on getting regulatory approval, which is one of the talking points about Netflix being able to get this deal accomplished."

FIONA CINCOTTA, SENIOR MARKET ANALYST AT CITY INDEX, LONDON

"The immediate reaction that we're seeing is relatively muted and that would suggest that a lot of this might have been priced in. Longer term for Netflix, this is a big deal... it's basically transforming Netflix into a dominant player in Hollywood, which is quite a strategic change of direction for the company."

KIM FORREST, CHIEF INVESTMENT OFFICER AT BOKEH CAPITAL PARTNERS, PITTSBURGH

"It's super interesting that the bidding came down to Netflix winning and that a lot is being focused on the streaming business, which you know is Netflix business. Now I think it's going to be a heavy burden to get it passed through the regulators, not just in the United States but also worldwide. It's going to be an issue, but apparently the companies think that they can overcome that."

CHRIS BEAUCHAMP, CHIEF MARKET ANALYST AT IG GROUP, LONDON

"Netflix is badly in need of something to pep up its faltering share price, but this deal might not be it. Industry data suggests a wide crossover between those that have Netflix and those with HBO Max, so the immediate benefits are not apparent at present. Plus, the competition angle and a potential White House intervention loom large. Having seen its shares rise five-fold since 2022, it seems investors want something more to reenergise the stock price."

(Reporting by Anhata Rooprai, Shashwat Chauhan, Twesha Dikshit, Purvi Agarwal, Niket Nishant and Arpan Varghese in Bengaluru)