Netflix will acquire Warner Bros. In a deal valued at $82.7 billion, the companies announced Friday, a move that will reshape the entertainment industry and potentially consolidate streaming power. The agreement will see Netflix take ownership of Warner Bros.’ film and television studios, HBO, and HBO Max, while Warner Bros. Discovery will spin off its Global Networks division, which includes CNN, Discovery Channel, TBS, and TNT, as an independent company.
The cash and stock transaction is priced at $27.75 per Warner Bros. Discovery share, according to a Netflix press release. The deal is expected to close in the third quarter of 2026, pending regulatory approval and following the separation of Warner Bros. Discovery’s cable business. Netflix co-CEO Ted Sarandos expressed confidence in securing regulatory clearance.
The acquisition will significantly expand Netflix’s content library, adding iconic franchises like Harry Potter and Game of Thrones to its existing catalog, which includes titles such as Stranger Things and Squid Game. Warner Bros.’ extensive film history, encompassing classics like Casablanca and Citizen Kane, will also become part of the Netflix offering.
Currently, Netflix boasts over 300 million paid subscribers across more than 190 countries, making it the world’s largest paid streaming service. The addition of HBO Max’s nearly 130 million subscribers would create a dominant force in the streaming market. The merger combines Netflix’s subscriber base with HBO Max’s, potentially creating a combined audience of over 430 million.
The deal has already drawn criticism from some industry leaders and lawmakers, who express concerns about the potential for reduced competition and increased market dominance by Netflix. The acquisition faces potential challenges from regulators and Hollywood guilds over antitrust concerns, as noted in reports following the announcement.
“Our mission has always been to entertain the world,” Sarandos said in the press release. “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, People can supply audiences more of what they love and help define the next century of storytelling.”
The $82.7 billion valuation reflects the significant value placed on Warner Bros.’ intellectual property and streaming assets. The deal, initially reported as $72 billion by some outlets, underscores the ongoing consolidation within the entertainment industry and the increasing importance of streaming services.
Warner Bros. Discovery will proceed with the separation of its Global Networks division prior to the completion of the acquisition, a step intended to address potential regulatory hurdles. The future of the spun-off division remains uncertain as of Friday, with no immediate plans announced beyond its independence from the studio and streaming businesses.
