Netflix Announces Landmark $82.7 Billion Acquisition of Warner Bros., Marking One of the Largest Deals in Entertainment History

In one of the most consequential mergers the global entertainment industry has ever witnessed, Netflix Inc. has entered into a definitive agreement to acquire Warner Bros. from Warner Bros. Discovery (WBD) in a transaction valued at $82.7 billion in enterprise value and $72 billion in equity value. The announcement was made on December 5, 2025, signaling a seismic shift in the competitive landscape of global streaming and entertainment.

The blockbuster deal—structured as a combination of cash and stock—marks Netflix’s most ambitious expansion since its transformation from a DVD-by-mail service to a global streaming giant. Under the agreement, Netflix will take ownership of Warner Bros.’ legendary film and television studios, HBO, and the HBO Max streaming service. The merger is contingent on the completion of WBD’s earlier-announced corporate restructuring, which will spin off its Global Networks division into a separate publicly traded company known as Discovery Global by the third quarter of 2026.

Once finalized, the acquisition will unite Netflix’s vast streaming ecosystem and global subscriber base with the storied legacy of Warner Bros., a studio that for more than a century has produced some of the world’s most influential films and television stories. Iconic titles and franchises—ranging from The Wizard of Oz, Casablanca, Harry Potter, and the entire DC Universe to critically acclaimed HBO series like The Sopranos, Game of Thrones, and The Big Bang Theory—will become part of Netflix’s content arsenal. This combined library, alongside Netflix originals such as Stranger Things, Wednesday, Squid Game, and Bridgerton, is expected to dramatically enhance the company’s offering to consumers worldwide.

Netflix co-CEO Ted Sarandos described the acquisition as a monumental step for both companies and for global entertainment. “Our mission has always been to entertain the world,” Sarandos stated. “By uniting Warner Bros.’ unparalleled library—from timeless classics to beloved modern hits—with Netflix’s global reach and culture-shaping originals, we are creating a platform that will define the next century of storytelling.”

Co-CEO Greg Peters echoed the sentiment, emphasizing the economic and creative potential of the merger. According to Peters, bringing Warner Bros.’ production infrastructure under the Netflix umbrella will not only deepen the company’s content slate but also strengthen the entire entertainment industry by accelerating job creation, expanding production capacity in the U.S., and offering new opportunities for writers, directors, actors, and showrunners. The company estimates that the merger will generate $2–3 billion in cost savings annually by the third year after completion.

On the WBD side, CEO David Zaslav praised the merger as a historic combination of two powerhouses. “Warner Bros. has shaped global culture for over a hundred years,” he said. “Joining forces with Netflix ensures that these iconic stories—and the new worlds we continue to create—will reach even broader audiences for generations to come.”

Under the terms of the deal, each WBD shareholder will receive $23.25 in cash and $4.50 worth of Netflix shares for every WBD share held at the time of closing. The stock portion is subject to a price-protection mechanism ensuring that shareholders receive consistent value regardless of market fluctuations.

The boards of both companies have given unanimous approval, though the acquisition will still require regulatory clearance, formal approval from WBD shareholders, and the completion of Discovery Global’s spinoff. If all conditions are met, the transaction is expected to close within 12 to 18 months.

Financial advisory for the merger will be provided by Moelis & Company on Netflix’s side and Allen & Company, J.P. Morgan, and Evercore for Warner Bros. Discovery. Legal representation will involve several top-tier firms, including Skadden and Wachtell Lipton.

If completed, the acquisition will become one of the largest media mergers in history—solidifying Netflix not only as the dominant global streaming platform but as one of the most powerful entertainment conglomerates ever assembled.