Netflix has officially agreed to acquire Warner Bros. Discovery's film, television, and streaming divisions in a landmark $82.7 billion deal announced on December 5, 2025. This transaction, valued at $72 billion in equity and approximately $83 billion including debt, represents the largest acquisition in Netflix's history and marks a seismic shift in how the streaming giant operates. For a company that has long prided itself on being "builders rather than buyers," this move signals a fundamental strategic pivot that could reshape the entire entertainment landscape.​

The Deal That Surprised Hollywood

Netflix emerged victorious in a competitive bidding war against Comcast and Paramount Skydance, offering nearly $28 per share for Warner Bros. Discovery's studio and streaming assets. Under the agreement, Warner Bros. shareholders will receive $23.25 in cash plus approximately $4.50 in Netflix stock per share, representing a 121.3% premium over the company's September 10 closing price. "I understand that this acquisition may come as a surprise to some," Netflix co-CEO Ted Sarandos acknowledged during an investor call, adding that "this is a unique chance that aligns with our mission to entertain globally and unite people through compelling narratives".​

The transaction is expected to close in 12 to 18 months, pending regulatory approval and the completion of Warner Bros. Discovery's planned spinoff of Discovery Global, its cable networks division that includes CNN, TNT, and Discovery Channel. Netflix has committed to a $5.8 billion breakup fee if the deal fails due to regulatory issues, while Warner Bros. Discovery would owe Netflix $2.8 billion under certain circumstances.​

What Netflix Is Actually Buying

This acquisition grants Netflix access to a treasure trove of intellectual property accumulated over Warner Bros.' century-long history. Iconic franchises including "Harry Potter," "Game of Thrones," "The Big Bang Theory," "The Sopranos," "The Wizard of Oz," and the entire DC Comics universe—featuring Batman, Superman, and other superheroes—will join Netflix's existing catalog. Netflix will also acquire HBO, HBO Max, and Warner Bros. Games as part of the agreement.​

The strategic value extends beyond content libraries. Co-CEO Greg Peters indicated that Netflix could bundle streaming services or integrate HBO Max content for Netflix subscribers, leveraging the platform's proven ability to cultivate audiences for acquired series like "Breaking Bad" and "Suits". Netflix projects annual cost savings of $2 billion to $3 billion by the third year following the acquisition.​

The Theatrical Wildcard

Perhaps the most surprising element of this deal is Netflix's commitment to theatrical releases—a dramatic departure from its streaming-first philosophy. The company has pledged to honor Warner Bros.' existing theatrical contracts running through 2029, marking what many see as Netflix's admission that cinema still matters. This promise appears designed to address concerns from theater operators, though Cinema United, an international exhibition trade association, still labeled the deal an "unprecedented threat" to theaters worldwide.​

Regulatory Headwinds and Industry Concerns

The path to regulatory approval won't be simple. Some congressional members have already expressed concerns that a Netflix-Warner Bros. merger could harm consumers and reduce competition in Hollywood. Former WarnerMedia CEO Jason Kilar stated he could not envision "a more effective method to diminish competition in Hollywood than selling WBD to Netflix". CNN has reported that Netflix faces "a big unanswered question" regarding antitrust concerns that "may kill its Warner Bros. deal".​

Paramount Skydance, which competed in the bidding process, raised concerns earlier this week about alleged preferential treatment toward Netflix during the sale process. These regulatory and competitive concerns underscore the complexity of consolidating two entertainment giants in an already concentrated industry.​

A New Era for Streaming

This acquisition fundamentally transforms Netflix from a disruptor into an establishment player—ironically becoming the very type of traditional studio it once upended. By combining Netflix's 260+ million global subscribers with Warner Bros.' prestigious franchises and production capabilities, the merged entity will create what the companies describe as "an unparalleled entertainment portfolio for audiences around the globe".​

Netflix expects the merger to provide "greater opportunities for the creative community" by uniting its subscriber reach with Warner Bros.' intellectual property. Whether regulators, competitors, and audiences ultimately view this consolidation as beneficial or detrimental remains the defining question as this unprecedented deal moves toward completion.