Netflix has agreed to acquire Warner Bros Discovery (WBD) in a deal valued at $82.7 billion, giving the streaming company control of HBO, Warner Bros studios and some of the most influential television and film franchises in Hollywood history.
The Wall Street Journal reported that Netflix outbid Paramount–Skydance and Comcast in what is expected to become one of the entertainment industry’s most consequential transactions.
The companies said the deal will be executed through a cash-and-stock transaction worth $27.75 per WBD share. Netflix will pay $23.25 in cash and $4.50 in Netflix stock for each outstanding WBD share at closing. The transaction, which implies an equity value of about $72 billion and an enterprise value of $82.7 billion, is expected to complete after WBD spins off Discovery Global into a separate listed company in the third quarter of 2026.
A historic consolidation of storytelling power
The acquisition brings together Netflix’s global streaming scale with Warner Bros’ century-old studio legacy. It also hands Netflix the rights to a catalogue that includes The Sopranos, Game of Thrones, The Big Bang Theory, The Wizard of Oz, Harry Potter and the DC Universe. These titles will join Netflix originals such as Wednesday, Money Heist, Bridgerton and Extraction.
“Our mission has always been to entertain the world,” Netflix co-CEO Ted Sarandos said. He added that combining Warner Bros’ classic and contemporary franchises with Netflix’s slate would allow the company to “define the next century of storytelling.”
According to Reuters, the prospect of Netflix integrating HBO Max into its platform has raised concerns among prominent Hollywood figures, who have asked US lawmakers to examine the implications of the deal. They warned that further consolidation could trigger economic and institutional risks for the industry.
Analysts told Reuters the deal could lower overall streaming costs for consumers if Netflix and HBO Max merge services. But questions remain around how Netflix will handle theatrical releases, given its preference for digital-first distribution. CNBC reported that Netflix has promised to honour WBD’s existing theatrical commitments if the acquisition is completed.
A competitive bidding process
WBD had sought improved offers this week, the Wall Street Journal reported, prompting additional bids from Paramount, Comcast and Netflix. Paramount, which had attempted to buy the entire company, previously had a roughly $60 billion offer rejected in October, according to Reuters.
Paramount–Skydance later accused WBD of favouring Netflix in the final round of negotiations, CNBC reported, underscoring tensions around the sale process.
If approved by regulators, the acquisition will mark one of the largest entertainment mergers in decades, bringing a major Hollywood studio under the control of a dominant global streamer for the first time. It also intensifies the consolidation trend across media companies as they face slowing subscriber growth, rising production costs and heightened competition for franchise-driven content.
Netflix’s takeover of WBD signals the next phase of the streaming wars — one in which scale, library depth and distribution control increasingly determine who shapes global entertainment.