In a game-changing development for the global entertainment industry, Netflix announced on 5 December 2025 that it has struck a definitive agreement to acquire Warner Bros.’ film and television studios, along with its streaming business including HBO and HBO Max.
The deal — valued at roughly US $82.7 billion in enterprise value (about US $72.0 billion in equity value) — is among the largest acquisitions in media history. Under the terms, shareholders of Warner Bros. Discovery will receive US $27.75 per share, delivered as a mix of cash and Netflix stock.
The takeover marks a major departure from Netflix’s long-time strategy: the company built its dominance not through large purchases, but by licensing content and later investing heavily in original productions. This acquisition brings one of Hollywood’s oldest and richest content libraries into the Netflix fold — a library filled with iconic franchises and beloved classics.
The assets being acquired cover:
- The film and television studios of Warner Bros. — responsible for decades of movies and TV shows.
- Streaming services HBO and HBO Max — giving Netflix control of premium television content, high-profile series, and HBO’s vast catalogue.
- One of the most valuable content libraries in entertainment — from blockbusters and franchises to classic films and acclaimed series. Among the assets likely to join Netflix’s catalogue are franchises like Harry Potter, the DC Comics / DC Studios roster, as well as storied TV and film archives.
- The breadth of film, TV, and streaming infrastructure — giving Netflix not just content, but filmmaking and distribution capacity.
A key condition of the transaction is that Warner Bros. Discovery will first complete a previously-announced spin-off of its cable and networks business (news and sports channels such as CNN, TNT, TBS, etc.). That spin-off — which will become a standalone publicly traded company called Discovery Global — is expected to wrap up by the third quarter of 2026. Only then will the full acquisition close.
Netflix said it plans to maintain Warner Bros.’ existing operations, including theatrical film releases — a reassurance for those worried that a streaming giant might eliminate movie-theatre windows or abandon cinematic distribution old-school style.
The acquisition of Warner Bros.’ studios and library enables Netflix to consolidate production, distribution, and streaming under one roof — giving it significantly greater control over content creation, release schedules, and global reach.
The company also expects substantial cost savings — estimating US $2–3 billion in annual savings by the third year post-merger. This could allow reinvestment into more productions and original content globally, expanding jobs and creative opportunities in the entertainment industry.
In the words of Netflix co-CEO (as quoted in the announcement): by combining Warner Bros.’ legacy of storytelling with Netflix’s global streaming dominance, the new entity aims to “define the next century of storytelling.”
This merger could shift the center of gravity of content creation. With Netflix controlling both legacy studios and streaming reach, we may see larger global-scale productions, revival or expansion of major franchises, and significantly expanded output. Reduced fragmentation could also mean fewer small studios vying for attention — raising the bar for productions but potentially limiting diversity of ownership.
Netflix’s commitment to maintaining theatrical releases suggests that cinemas might continue to play a role. Yet the dominance of a streaming-backed giant could pressure box-office returns, distribution models, and how filmmakers plan film rollouts.
For audiences, the deal promises a massive-packed content library: classic films, blockbuster franchises, and streaming originals all in one place. This could lower the need for multiple subscriptions — especially if Netflix bundles offerings that include what HBO Max previously offered.
It could also mean greater access to international audiences. With Netflix’s global footprint, content from Warner Bros. could become more widely available — which might benefit fans across Africa, Asia, Europe, and beyond.
The flip side is concentration of power. Merging two streaming giants reduces the number of independent major players in global entertainment — which may raise competition and antitrust concerns, especially in the U.S. and Europe. Several industry observers and producers have voiced concern. A group of prominent film producers reportedly urged the U.S. Congress to intervene if the deal proceeds, warning of potential “economic and institutional crisis” in Hollywood due to consolidation.
Critics argue that reduced competition may stifle innovation, diminish independent voices, and limit variety. They fear the merger could lead to fewer creators having access to platforms, and less room for smaller studios or niche content to thrive.
The deal is subject to a handful of key conditions: completion of the spin-off of Warner’s cable/news networks business, regulatory approvals, and shareholder votes. Only after these will the acquisition formally close — likely within 12 to 18 months, with some projections pointing to late 2026 or early 2027.
Even then, integration will be a major challenge. Combining two massive operations — each with its own culture, systems, and business practices — can be difficult. Netflix has committed to preserving theatrical releases and continuing existing studio operations, but adapting to a new scale while managing costs, creative output, and global market demands will test the company’s organizational capacity.
Moreover, regulatory scrutiny remains uncertain. Governments and antitrust bodies may push back, especially given concerns over media concentration and reduced competition in streaming, content distribution, and film production. What emerges in the coming months will be closely watched by industry insiders, regulators, creatives, and audiences alike.
