Pictures: Warner Bros. and Netflix
It’s official. Warner Bros., which includes its film and television studios, HBO Max, and HBO, is becoming part of Netflix in the streamer’s largest acquisition in its history by some significant margin. It’s come after weeks of reports and speculation and various bidding rounds, with Netflix emerging victorious over rivals Paramount and Comcast, but there are many obstacles to overcome.
In a move that fundamentally reshapes the entertainment landscape and arguably concludes the Streaming Wars, Netflix has officially announced a definitive agreement to acquire Warner Bros., including its legendary film and television studios, HBO, and HBO Max.
The deal, announced overnight by Bloomberg and confirmed by Netflix this morning, values the transaction at approximately $82.7 billion and brings together the world’s largest streaming service with a century of Hollywood history. The deal has a mountain to climb in terms of government approval and ironing out the details. According to the NY Times, there’s a $5.8 breakup fee if the deal falls apart.
This marks Warner Bros.’ fourth acquisition over the past few decades and is easily Netflix’s biggest acquisition to date. Until now, their acquisitions have been for IP pickups such as Millarworld and The Roald Dahl Company, game companies like Boss Fight, SpryFox, and Night School Studios (the first two are either shuttered or sold back to their founders).
Here is everything you need to know about the acquisition, what it means for your subscription, and what is happening to the Discovery side of the business.
Netflix’s full press release for the acquisition can be found here. Netflix will conduct a conference call today at 5:00 am PT/8:00 am ET to discuss the contents of this release.
The Deal at a Glance
Netflix is acquiring the Warner Bros. side of Warner Bros. Discovery. This includes:
- Warner Bros. Pictures & Television Studios
- HBO and HBO Max
- The DC Universe
- The entire scripted library (Friends, Harry Potter, Game of Thrones)
The transaction is valued at $27.75 per WBD share ($23.25 in cash and roughly $4.50 in Netflix stock).
However, Netflix is not buying everything. The Discovery side of the business (Reality TV, News, and Sports) is spinning off into its own separate company.
A Content Powerhouse: What’s Coming to Netflix?
For Netflix subscribers, this deal represents an injection of intellectual property unlike anything seen before. Ted Sarandos, co-CEO of Netflix, highlighted the merging of libraries as a way to “define the next century of storytelling.” The press release cites Netflix’s current heavy hitters like Wednesday, Stranger Things, Bridgerton, and Squid Game, and the Warner Bros. catalog, and the service will become the exclusive home to some of the biggest brands in history.
Major Franchises Joining Netflix:
- The Wizarding World: Harry Potter and Fantastic Beasts
- DC Universe: Batman, Superman, Wonder Woman, and the upcoming James Gunn slate.
- HBO Prestige TV: The Sopranos, Game of Thrones, House of the Dragon, The Last of Us, and Succession.
- Comedy Giants: The Big Bang Theory, Friends, and Ted Lasso (via WBTV production).
- Theatrical Classics: Casablanca, Citizen Kane, The Wizard of Oz, and The Matrix.
What Happens to Theatrical Releases?
In the announcement, Netflix explicitly stated it expects to “maintain Warner Bros.’ current operations and build on its strengths, including theatrical releases for films.”
Greg Peters, co-CEO of Netflix, noted that the acquisition is designed to accelerate the business, utilizing Warner Bros.’ “phenomenal creative executives and production capabilities.”
The “Discovery Global” Spin-Off
It is important to note what is not included in this deal. Before Netflix closes this acquisition, Warner Bros. Discovery will separate its Global Networks division into a new, publicly traded company called Discovery Global.
Staying with Discovery Global (Not coming to Netflix):
- CNN
- TNT Sports (U.S.)
- Discovery Channel
- HGTV / Food Network assets
- Discovery+
- Bleacher Report
This split is expected to be completed in Q3 2026.
Timeline: When Does This Happen?
Don’t expect the HBO library to appear on your Netflix homepage tomorrow. These massive mergers take time to navigate regulatory approvals and shareholder votes.
- Q3 2026: WBD completes the separation of Discovery Global.
- Late 2026 / Early 2027: The Netflix/Warner Bros. transaction is expected to close (12-18 months from today).
What They Are Saying
Ted Sarandos, Netflix co-CEO:
“By combining Warner Bros.’ incredible library of shows and movies… 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.”
David Zaslav, President and CEO of Warner Bros. Discovery:
“Today’s announcement combines two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most… By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come.”
Greg Peters, Netflix co-CEO:
“With our global reach and proven business model, we can introduce a broader audience to the worlds they create—giving our members more options, attracting more fans to our best-in-class streaming service, strengthening the entire entertainment industry and creating more value for shareholders.”
This is a make-or-break or sink-or-swim acquisition for Netflix and fundamentally changes Hollywood. Will it be for the better or for the worse? We’ll have to wait and find out.
More to come throughout the day…
