Netflix to Acquire Warner Bros. Studio and Streaming Business in $82.7 Billion Deal

Netflix Secures Major Warner Bros. Assets in Landmark Deal

Netflix, Inc. announced on Friday, December 5, 2025, that it has entered into a definitive agreement to acquire the film and television studios of Warner Bros., along with its premium cable network HBO and streaming service HBO Max, from Warner Bros. Discovery, Inc. (WBD). The transaction is valued at an enterprise value of approximately $82.7 billion, with an equity value of $72.0 billion. This landmark deal is set to significantly reshape the global entertainment and streaming landscape.

The acquisition follows a weeks-long bidding war, where Netflix emerged victorious over competing bids from companies such as Paramount Skydance and Comcast. Under the terms of the cash and stock transaction, WBD shareholders will receive $27.75 per share.

Strategic Spin-Off Precedes Acquisition

Crucially, the acquisition will only proceed after a strategic separation of Warner Bros. Discovery's other assets. The company plans to spin off its global networks division, which includes prominent cable television channels such as CNN, TBS, TNT, HGTV, and Discovery, into a new, publicly-traded entity to be named Discovery Global. This separation is anticipated to be completed in the third quarter of 2026, prior to the closing of the Netflix acquisition.

Netflix co-CEO Ted Sarandos commented on the deal, stating that combining with Warner Bros. Discovery will help both companies 'define the next century of storytelling' and create 'a better Netflix for the long term.' David Zaslav, CEO of Warner Bros. Discovery, echoed this sentiment, noting that the deal reflects 'the realities of an industry undergoing generational change' and will 'ensure people everywhere will continue to enjoy the world's most resonant stories for generations to come.'

Implications for the Entertainment Industry

The acquisition will bring an extensive catalog of iconic franchises and intellectual property under Netflix's ownership, including

• Harry Potter
• DC Universe (Batman, Superman)
• Game of Thrones
• Friends
• The Big Bang Theory
• The Sopranos

This move is expected to significantly bolster Netflix's content library and expand its global subscriber base to over 420 million.

Despite the shift towards streaming, Netflix has committed to maintaining theatrical releases for Warner Bros. films, honoring existing contractual agreements. However, the deal is expected to face considerable regulatory scrutiny in both the United States and Europe, given the potential for increased market dominance by Netflix in the streaming sector.

Market Reaction and Future Outlook

Following the announcement, market reactions were mixed. Shares of Netflix experienced a decline of 2.9% to 3.5%, while Warner Bros. Discovery shares saw an increase of 6.3% in trading. The transaction is expected to close within 12 to 18 months, subject to regulatory approvals and the completion of the Discovery Global spin-off.