Netflix to Acquire Warner Bros. Discovery in Historic $82.7 Billion Deal
n a seismic shift that will reshape the entertainment industry, Netflix has announced a definitive agreement to acquire Warner Bros. Discovery's film and television studios, streaming division (including HBO and HBO Max), and content libraries. The landmark cash-and-stock deal is valued at approximately $82.7 billion (including debt).
A New Entertainment Behemoth
The acquisition unites Netflix's global reach of over 300 million subscribers with Warner Bros.' century-long legacy of storytelling and iconic franchises. Beloved properties like Harry Potter, the DC Universe (Batman, Superman), Game of Thrones, Friends, The Sopranos, and The Wizard of Oz will join Netflix's portfolio that includes Stranger Things, Wednesday, and Bridgerton.
"Our mission has always been to entertain the world," said Netflix co-CEO Ted Sarandos. "By combining Warner Bros.' incredible library... with our culture-defining titles... we'll be able to do that even better."
Deal Structure and Timing
The transaction is expected to close within 12 to 18 months, after WBD completes its plan to spin off its linear cable networks (like CNN, TNT, and the Discovery channels) into a separate publicly traded company called Discovery Global.
The move came after a bidding war that included Comcast and Paramount, with Netflix securing the deal with a robust offer that includes a pledge to maintain Warner Bros.' current operations, including theatrical releases for its films. This commitment to theatrical windows marks a strategic shift for Netflix.
Industry Impact and Regulatory Scrutiny
The merger has generated both excitement and concern across Hollywood.
Benefits: Netflix expects to generate at least $2 billion to $3 billion in annual cost savings and aims to create more opportunities for the creative community by leveraging the iconic IP.
Concerns: The deal is expected to face intense regulatory and antitrust scrutiny in the U.S. and Europe, with concerns raised by film producers' groups, the Directors Guild of America, and the Writers Guild of America about potential monopolistic control and the future of theatrical exhibition.
Both the Netflix and WBD boards of directors have unanimously approved the transaction. The deal is a major gamble intended to define the next generation of global entertainment.