Netflix Announces Deal To Buy Warner Bros. And HBO Max For Massive US $82.7 Billion

Netflix and Warner Bros. Discovery (WBD) announced an agreement earlier today (Friday 5th December, 2025) under which Netflix will acquire Warner Bros., including its film and TV studios, its gaming business, HBO Max and HBO, in a deal with a total enterprise value (including debt) of approximately US $82.7 billion — with an equity value of US $72 billion. The move, if approved, is set to dramatically reshape the entertainment business as we know it.

The cash and stock transaction is valued at US $27.75 per share of WBD. Under the terms of the agreement, each WBD shareholder will receive US $23.25 in cash and US $4.50 in shares of Netflix common stock for each share of WBD common stock outstanding at the closing of the transaction.

“Our mission has always been to entertain the world,” said Netflix co-CEO Ted Sarandos. “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, we can give audiences more of what they love and help define the next century of storytelling.”

“Today's announcement combines two (2) of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most,” said WBD CEO David Zaslav. “For more than a century, Warner Bros. has thrilled audiences, captured the world's attention, and shaped our culture. By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world's most resonant stories for generations to come.”

Netflix’s deal to buy the Warner Bros. streaming and studios business comes after a weeks-long bidding war that pitted the streaming giant against David Ellison’s Paramount Skydance and Comcast. News broke on Thursday evening (4th December, 2025) that Netflix had entered into exclusive negotiations with WBD on a deal for Warner Bros. and HBO Max.

“I know some of you are surprised we are making this acquisition,” Sarandos said on a call with analysts on Friday, noting the company historically has been more “builders” than “buyers.”

Netflix said it expects “to maintain Warner Bros.’ current operations and build on its strengths,” including theatrical releases for films. Currently, Warner Bros. has deals to release its film in cinemas through 2029. In the near-term, Netflix signaled it would keep HBO Max as a discrete service, while it also touted the addition of HBO and HBO Max content to its lineup.

“By adding the deep film and TV libraries and HBO and HBO Max programming, Netflix members will have even more high-quality titles from which to choose,” the company said. “This also allows Netflix to optimize its plans for consumers, enhancing viewing options and expanding access to content.”

The deal is expected to close in the next twelve (12) to eighteen (18) months, the companies said, after the previously-announced separation of WBD’s TV networks division, Discovery Global, into a new publicly-traded company, which is now expected to be completed in the third quarter of 2026.

The transaction was unanimously approved by the Boards of Directors of both Netflix and WBD. The deal is contingent on the completion of the spin-off of Discovery Global as well as regulatory approvals, the approval of the deal by WBD shareholders and other “customary closing conditions.”

According to the companies, “This acquisition brings together two (2) pioneering entertainment businesses, combining Netflix’s innovation, global reach and best-in-class streaming service with Warner Bros.’ century-long legacy of world-class storytelling. Beloved franchises, shows and movies such as ‘The Big Bang Theory,’ ‘The Sopranos,’ ‘Game of Thrones,’ ‘The Wizard of Oz’ and the DC Universe will join Netflix’s extensive portfolio, including ‘Wednesday,’ ‘Money Heist,’ ‘Bridgerton,’ ‘Adolescence’ and ‘Extraction,’ creating an extraordinary entertainment offering for audiences worldwide.” Netflix will also pick up the Warner Bros. Games division as part of the deal.

The deal announcement on Friday did not state what role, if any, David Zaslav, President and CEO of Warner Bros. Discovery, will have as a result upon the completion of the deal. Zaslav was set to become CEO of the stand-alone Warner Bros. entity.

Netflix, however, faces a potential hurdle in clearing the WB deal over antitrust issues — a point that Ellison’s Paramount Skydance emphasized in its communications with the WBD Board in its last bid. Rep. Darrell Issa (R-Calif.) raised that concern in a letter to U.S. President Donald Trump's administration officials on 13th November, 2025, writing, “With more than 300 million global subscribers and a vast content library, Netflix currently wields unequaled market power.”

Under the agreement, Netflix will pay WBD a breakup fee of US $5.8 billion if the deal fails to close “under certain circumstances relating to the failure to obtain approvals” or if U.S. or international regulatory bodies block the transaction, the streamer disclosed in an SEC filing.

“We’ve signed a deal [and] we are running full speed toward regulatory approval,” Sarandos said on the analyst call on Friday.

Hollywood industry groups, including the Directors Guild of America and theater-chain trade group Cinema United, have also come out in expressing fears that Netflix’s takeover of Warner Bros. will harm the movie theater business.

Netflix, in its announcement, asserted that the deal will result in “a stronger entertainment industry.” According to the company, “This acquisition will enhance Netflix’s studio capabilities, allowing the company to significantly expand U.S. production capacity and continue to grow investment in original content over the long term which will create jobs and strengthen the entertainment industry.”

The streamer also claimed that a combined Netflix-Warner Bros. will provide “more opportunities for the creative community,” saying in a statement, “By uniting Netflix’s member experience and global reach with Warner Bros.’ renowned franchises and extensive library, the company will create greater value for talent — offering more opportunities to work with beloved intellectual property, tell new stories and connect with a wider audience than ever before.”

“Our mission has always been to entertain the world,” Sarandos said in a statement. “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, we can give audiences more of what they love and help define the next century of storytelling.”

Greg Peters, co-CEO of Netflix, added: “Warner Bros. has helped define entertainment for more than a century and continues to do so with phenomenal creative executives and production capabilities. 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.”

More on this as it becomes available. 

[Source: Variety]