Netflix to Acquire Warner Bros. in $82.7 Billion Deal: The Most Powerful Entertainment Merger of the Century

In a historic step that redefines the global entertainment industry, Netflix, Inc. and Warner Bros. Discovery (WBD) have entered into a definitive agreement under which Netflix will acquire Warner Bros., including its film and television studios, HBO, HBO Max, and WB Games.

Announced on December 5, 2025, the acquisition is valued at $27.75 per WBD share, with a total enterprise value of $82.7 billion (equity value of $72 billion).

The transaction will close following the separation of WBD’s Discovery Global division (which includes CNN, Discovery Channel, TNT Sports, and Discovery+) into a standalone public company in Q3 2026.

By merging Netflix’s global streaming infrastructure, distribution power, and technological innovation with Warner Bros.’ 100-year legacy of iconic storytelling, the combined company becomes the most influential entertainment force of the 21st century.

A Historic Combination of Two Storytelling Titans

Netflix describes the Warner Bros. acquisition as a once‑in‑a‑generation opportunity to fuse Hollywood’s most iconic IP library with the largest streaming platform ever built.

Ted Sarandos, Netflix co-CEO, stated:

“Our mission has always been to entertain the world. By combining Warner Bros.’ incredible library of shows and movies (from timeless classics like Casablanca and Citizen Kane to modern favorites like Harry Potter and Friends) with our culture-defining titles like Stranger Things, KPop Demon Hunters and Squid Game, 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.”

WBD CEO David Zaslav added:

“Warner Bros. has shaped global culture for more than a century. By coming together with Netflix, we will bring the world’s most resonant stories to more people than ever before.”

This combination creates an unparalleled entertainment ecosystem positioned to dominate theatrical releases, global streaming, gaming, merchandising, and franchise development for decades.

Why Netflix Wants Warner Bros.

Netflix’s rapid shift from streaming platform to vertically integrated entertainment powerhouse requires:

• control over world-class franchises,
• deeper studio production capacity,
• long-term IP ownership,
• predictable content pipelines,
• global theatrical coordination.

Warner Bros. delivers all of this immediately, and at scale.

Greg Peters, Netflix co-CEO, noted:

“This acquisition accelerates our business for decades to come. With Warner Bros.’ production capabilities and our global reach, we can bring beloved worlds to broader audiences and create enormous value for creators, fans, and shareholders.”

What Netflix Gains: The Strongest Content Library in the World

The acquisition brings an unmatched portfolio of global franchises:

• HBO franchises: Game of Thrones, The Sopranos, The Last of Us, Succession.
• Warner Bros. films: The Wizard of Oz, The Dark Knight, Inception, Dune.
• DC Universe: Batman, Superman, Wonder Woman, Joker.
• Global hits: Harry Potter, Friends, The Big Bang Theory.

These join Netflix originals like Wednesday, Money Heist, Bridgerton, Stranger Things, creating the most powerful content portfolio ever assembled.

How Analysts Interpreted the Deal

Bloomberg’s interview commentary highlights:

• Netflix is no longer just a streaming company — it is a studio empire.
• The deal increases pressure on Disney and raises existential questions for Paramount and Lionsgate.
• The acquisition signals Hollywood’s final shift from cable‑bundle economics to direct‑to‑consumer streaming dominance.
• Regulators will scrutinize the merger intensely, especially around CNN and news concentration.
• The deal marks the “beginning of the end” of legacy vertically integrated media giants unless they reinvent at hyperscale.

Analysts also noted that Wall Street views the acquisition positively due to Netflix’s strong cash flow profile.

Deal Structure and Financial Mechanics

Under the terms of the agreement:

• WBD shareholders receive $23.25 in cash and $4.50 of Netflix stock per share.
• Netflix stock issuance is protected by a collar mechanism:
  • If Netflix’s 15‑day VWAP falls below $97.91, shareholders get 0.0460 shares.
  • If it rises above $119.67, shareholders get 0.0376 shares.
  • Between these values, stock is priced at $4.50.

The transaction was unanimously approved by both boards.

Financing

Netflix is supported by:

• Moelis & Company (financial advisor),
• Skadden Arps (legal counsel),
• Wells Fargo, BNP, and HSBC (committed debt financing).

WBD is advised by:

• Allen & Company, J.P. Morgan, Evercore,
• Wachtell Lipton and Debevoise & Plimpton (legal counsel).

Industry Impact: A Shockwave Through Hollywood

This is the largest entertainment merger since Disney acquired Fox.

Competitive Shifts

• Disney faces its strongest challenger yet.
• Amazon and Apple may escalate acquisitions.
• Paramount and Lionsgate likely become acquisition targets.
• Traditional TV networks risk collapse without scale.

Theatrical Future

Netflix committed to maintaining Warner Bros.’ theatrical releases, signaling a hybrid future of cinemas + global streaming acceleration.

Creative Community Impact

Netflix promises:

• expanded budgets,
• more talent opportunities,
• the revival of dormant Warner Bros. IP.

Regulatory Challenges and Global Approval Timeline

The acquisition faces intense regulatory scrutiny:

• U.S. DOJ and FTC antitrust review,
• EU Commission competition review,
• UK CMA cultural influence examinations,
• concerns over consolidation of news (CNN).

Expected closing: 12–18 months, assuming no divestiture stalls.

Outlook: The Most Consequential Entertainment Deal in a Generation

The Netflix–Warner Bros. combination is not merely a merger; it is a global reordering of entertainment power.

If successful, Netflix becomes:

• the largest content owner in the world,
• the most dominant streaming platform,
• a top‑tier theatrical player,
• the strongest IP ecosystem ever built.

Hollywood has officially entered its post‑studio era — and Netflix sits at the top.