In a seismic shift for the global entertainment industry, Netflix has officially confirmed its acquisition of Warner Bros. Discovery’s (WBD) studio and streaming business in a landmark deal valued at approximately $82.7 billion. The transaction sees the streaming giant absorb one of Hollywood’s most storied studios, including its vast film and television production assets, HBO, and the HBO Max streaming service.
The acquisition, unanimously approved by both boards, will hand Netflix control over iconic franchises like Harry Potter, Game of Thrones, the DC Universe, and The Sopranos, merging them with its own global hits like Stranger Things and Squid Game. The deal is set to close in the third quarter of 2026, following WBD’s planned spin-off of its Global Networks division into a separate entity called Discovery Global.
The acquisition, which carries a total enterprise value of $82.7 billion (including WBD’s debt) and an equity value of $72.0 billion, is the largest media consolidation in over a decade. Netflix prevailed over a heated bidding war that included major rivals like Comcast and Paramount Skydance.
Key financial terms of the transaction:
- Per Share Price: Netflix will pay $27.75 per WBD share, which represents a substantial premium.
- Payment Structure: The payment is structured as a cash-and-stock deal, with shareholders receiving $23.25 in cash and $4.50 in Netflix stock for each WBD share.
- Cost Savings: Netflix anticipates generating between $2 billion and $3 billion in annual cost savings by the third year after the deal closes, primarily through the merger of back-end operations and the two streaming platforms.
Netflix Co-CEO Ted Sarandos emphasized the historic nature of the union: “By combining Warner Bros.’ incredible library of shows and movies… with our culture-defining titles… we’ll be able to do that even better. Together, we can give audiences more of what they love and help define the next century of storytelling.”
The rationale behind Netflix’s bold move is clear: securing a permanent, massive content advantage in the intensely competitive streaming landscape. The merger effectively eliminates a major competitor and brings together two of the world’s largest subscriber bases, potentially commanding over 21% of the U.S. streaming viewership.
The wealth of Intellectual Property (IP) Netflix is acquiring is staggering:
- Premium TV: Control of HBO and its high-prestige library, including Succession, The Last of Us, and The White Lotus.
- Film Studios: Ownership of the Warner Bros. film and TV studios, providing a constant pipeline of major studio content.
- Major Franchises: Immediate ownership of the DC Universe, the Harry Potter saga, and sitcom classics like Friends and The Big Bang Theory.
This combination of premium, library, and global content cements Netflix’s position as the dominant player, making it a virtually unavoidable destination for consumers worldwide.
While the boards have approved the deal, the path to the Q3 2026 closing faces significant regulatory scrutiny. Analysts predict the merger will face intense review from antitrust authorities in the United States and the European Union, given the combination of the world’s largest streaming service (Netflix) with a major Hollywood studio and a leading premium streamer (HBO Max).
Moreover, the deal has drawn fierce opposition from industry groups and film producers who fear Netflix’s historical preference for streaming will lead to the elimination of the traditional theatrical release window for Warner Bros. films.
Netflix has attempted to mitigate these fears, stating it will honour existing theatrical commitments and plans to “maintain Warner Bros.’ current operations.” Nevertheless, critics, including a former Warner Bros. CEO, have publicly warned that the merger threatens to reduce competition and ultimately harm consumer choice by consolidating so much content power under one roof. The massive $5.8 billion breakup fee offered by Netflix signals the high regulatory risk involved.
