In a move that has sent shockwaves through Hollywood, Netflix and Warner Bros. Discovery announced on December 5, 2025, that they have entered into a definitive agreement for Netflix to acquire Warner Bros., including its film and television studios, HBO Max, and HBO. The landmark deal, valued at $72 billion in equity and $82.7 billion in enterprise value, would unite two entertainment giants and reshape the future of streaming and content creation.
Under the terms of the agreement, Netflix will acquire Warner Bros. shares at $27.75 per share, pending the completion of Warner Bros. Discovery's planned split. This split will see Warner Bros. Discovery's Global Networks division, including channels like CNN, TNT, and HGTV, spun off into a new publicly traded company called Discovery Global, expected to be completed in Q3 2026. The Netflix-Warner Bros. transaction is anticipated to close between Q4 2026 and Q2 2027, subject to regulatory and shareholder approvals.
The acquisition follows a competitive bidding process that included other major media companies like Paramount Skydance and Comcast. Netflix's cash-and-stock offer ultimately outpaced its rivals, securing the streaming giant's position to acquire Warner Bros.' extensive assets. These assets include iconic franchises and storied libraries such as "The Big Bang Theory", "The Sopranos", "Game of Thrones", "The Wizard of Oz," and the DC Universe. This vast content library will merge with Netflix's existing portfolio, which includes hits like "Wednesday," "Money Heist," and "Bridgerton", creating an unparalleled entertainment offering for audiences worldwide.
Netflix executives have emphasized the strategic benefits of the acquisition, highlighting the complementary strengths and assets of the two companies. Netflix's innovation, global reach, and streaming service will combine with Warner Bros.' legacy of world-class storytelling. The acquisition will also allow Netflix to optimize its plans for consumers, enhancing viewing options and expanding access to content. Netflix intends to maintain Warner Bros.' current operations, including theatrical releases for films, signaling a commitment to both streaming and traditional distribution models.
Industry analysts predict that the merged entity could control a significant portion of the U.S. streaming market. The deal is expected to generate $2 to $3 billion in annual cost savings within three years and be accretive to earnings per share by the second year after closing. Netflix co-CEO Ted Sarandos stated, "Our mission has always been to entertain the world," emphasizing that the combination of Warner Bros.' library with Netflix's culture-defining titles will enable them to achieve this mission even better.
However, the proposed acquisition has raised concerns among Hollywood unions, trade groups, and government officials. Concerns revolve around greater industry consolidation, potential job losses, and the impact on theatrical box office revenue. Some lawmakers have voiced concerns that Netflix's dominance in streaming could lead to higher prices for consumers. The Directors Guild of America has expressed "significant concerns" about the deal. To address these concerns, Netflix has committed to continuing theatrical releases for Warner Bros.' films and investing in original content creation.
The deal's approval rests with U.S. federal regulators and may face scrutiny from European antitrust authorities. If the deal fails to gain regulatory approval, Netflix would be required to pay a $5.8 billion breakup fee. Despite these challenges, the acquisition represents a bold move by Netflix to solidify its position as a global entertainment leader and transform the media landscape.
