In a seismic step for global entertainment, Netflix has entered into a definitive agreement to acquire Warner Bros. Entertainment. Discovery (WBD)including movie studios, HBO Max and a huge catalog of intellectual property, With a total value of $82.7 billion (72,000 million share value).
deal, Cash and stock at $27.75 per WBD sharebeating out offerings from competitors like Paramount, Comcast, and The merger represents final completion after exclusive negotiationsalthough it is still awaiting regulatory approvals and the separation of non-core assets such as CNN and Discovery.
Netflix announced today that it has acquired Warner Bros. Together, we will define the next century of storytelling, creating exceptional entertainment for audiences everywhere. https://t.co/rXPFMNIs1A pic.twitter.com/0pdsMUEob8
– Netflix (@netflix) December 5, 2025
This deal, which was unanimously approved by the boards of directors of both companies, Brings popular franchises like Harry Potter, DC Comics, Game of Thrones, and The Sopranos to Netflixpromising synergies with annual savings of $2-3 billion by year three and a positive impact on earnings per share.
“Our mission has always been to entertain the world.”said Ted Sarandos, Netflix co-CEO. “By combining Warner Bros. An incredible range of shows and movies — from timeless classics like Casablanca and Citizen Kane to modern classics like Harry Potter and Friends — and with culture-defining titles like Stranger Things, K-Pop Demon Slayers, and The Squid Game, we can do better. “Together, we can give audiences more of what they love and help define the next century of storytelling.”.
Netflix has officially announced its acquisition of Warner Bros. for $82.7 billion
They have entered into a definitive agreement under which Netflix will acquire the studio, including its film and television divisions, HBO Max and HBO. pic.twitter.com/MYEW9uXZKA
— ScreenTime (@ScreenTime) December 5, 2025
but, It faces antitrust scrutiny in the United States and EuropeIt is expected to close within 12 to 18 months following the separation of Discovery Global in the third quarter of 2026. Consolidating Netflix’s dominance in streaming while maintaining Warner Bros.’ operations.including theatrical releases and HBO Max as a separate service in the short term.
Agreement Warner Bros. Studios includes: and HBO Max and HBO, with a combined payout of $23.25 in cash and $4.50 in Netflix stock for each WBD share.. Netflix plans Improving plans for subscribers, expanding original production and generating value for shareholderswhereas previous spin-off channels like CNN and TNT allow us to focus on the creative core.
The news sparked mixed reactions. Jason Kilar, former CEO of WarnerMedia, criticized the X deal, explaining “There is no more effective way to limit competition in Hollywood.”This is by reducing the vibrant entities in production and distribution.
If I were tasked with doing this, I wouldn’t be able to think of a more effective way to reduce competition in Hollywood than selling WBD to Netflix
-Jason Kilar (@jasonkilar) December 4, 2025
The Directors Guild of America (DGA) expressed. ‘Great fears’ And he plans to meet Netflix. The industry association urges the US Congress to interveneWarning of a potential crisis in the sector if the purchase process is completed.
What happens if Netflix buys Warner Bros? Implications for the future of broadcasting
If this acquisition is completed It could reshape HollywoodReducing theatrical releases and changing distinct television production styles.
Netflix, which has never done a deal of this size, It will position itself as an undisputed giant, integrating HBO Max to improve costs and subscriptions. however, WBD shares rose 3.7% premarketwhile Netflix prices fell slightly, reflecting regulatory uncertainty.