Netflix and Warner Bros. Discovery (WBD) have officially announced a historic agreement: Netflix will acquire Warner Bros.’ film and television studios, along with HBO and HBO Max, in a cash-and-stock deal worth an enormous $82.7 billion.
Under the terms, WBD shareholders will receive $23.25 in cash and $4.50 in Netflix stock per share. The acquisition will only include the studios and streaming assets, meaning WBD must first spin off its entire cable and networks division into a separate company called Discovery Global. This spin-off is expected to be completed by Q3 2026.
Once the spin-off is done and regulatory reviews conclude, the acquisition is projected to close within 12 to 18 months. The scale, timing and structure make this one of the most complex entertainment deals ever attempted.
What Netflix Gains
With this acquisition, Netflix gains control of one of the richest and most influential entertainment libraries on the planet. Warner Bros brings decades of films, premium scripted shows, iconic franchises and prestige television under HBO and HBO Max.
Owning Warner Bros’ studio infrastructure gives Netflix end-to-end creative and production power. Instead of relying solely on commissioning and producing originals, Netflix now becomes a fully integrated media giant capable of developing, producing, distributing and streaming large-scale global content.
This instantly strengthens Netflix’s position in the global entertainment market. It can now expand its content output, explore franchise-building at a much bigger scale, and leverage Warner Bros’ creative engine to push its streaming dominance further.
What the Leaders Are Saying
Netflix co-CEO Ted Sarandos called the moment “a powerful union of two storytelling giants,” emphasizing that combining Warner Bros’ century-long creative legacy with Netflix’s worldwide streaming reach will create unmatched opportunities for audiences and creators.
Co-CEO Greg Peters said the move brings “extraordinary storytelling and global distribution together,” and expressed confidence that the acquisition will create long-term value for shareholders and unlock a new era of content creation.
From the WBD side, CEO David Zaslav described the deal as “historic,” saying that merging with Netflix ensures Warner Bros’ films and shows will continue reaching massive global audiences for generations to come.
Netflix also confirmed that theatrical releases will continue as usual and that HBO Max will not be shut down. Instead, HBO Max will remain a standalone platform while selected content gradually expands into Netflix’s global catalog.
Why This Matters
This deal is not just a business transaction. It marks the biggest power shift in Hollywood since the Disney-Fox merger and signals a new era of consolidation in entertainment.
For viewers, it could mean access to a wider, more premium content library under a single platform. Classic franchises, blockbuster films and award-winning series will now have a fresh distribution avenue.
For creators, the merger brings both advantages and concerns. While more resources and global reach might support bigger productions, industry consolidation often reduces competition. With fewer independent buyers, creators may see tighter budgets, stricter control and fewer alternative platforms to pitch ideas.
For Netflix, the acquisition secures its transformation from a streaming platform into a vertically integrated entertainment company. With Netflix owning both premium IP and global distribution, its bargaining power increases significantly.
Analysts estimate potential cost savings of billions each year once the companies fully integrate. However, Netflix will still face the challenge of maintaining quality while merging two very different corporate cultures and production systems.
Watch Points: Spin-Off, Regulators and Integration
Before the acquisition can close, WBD must successfully complete its spin-off of the Discovery Global networks division. This is a large structural move involving the separation of dozens of cable channels, distribution arrangements and legacy contracts.
Regulators will heavily scrutinize the deal due to its size and its potential impact on competition. Industry guilds have already expressed strong concerns. Unions fear that merging two entertainment giants could lead to job cuts, fewer buyers for content and less diversity in decision-making.
The sheer scale of integration merging Warner Bros’ storied studio systems with Netflix’s tech-driven streaming operations will be one of the company’s biggest tests. Ensuring smooth collaboration across creative, production, marketing and distribution will determine how successful this merger becomes.
Industry Takeaway
The Netflix–Warner Bros acquisition marks a turning point for the global entertainment industry. Streaming giants, legacy studios and tech-driven business models are now converging into fewer, more powerful entities. Netflix’s bold move to acquire a century-old studio signals that the future of entertainment lies in consolidation and global integration.
If the deal successfully closes, Hollywood will enter a new era where a handful of studios control the majority of premium content, major franchises and global distribution. That shift will affect creators, audiences, studios and competitors across the world.
