Netflix has reached an $82.7 billion agreement to acquire Warner Bros. studios along with HBO and HBO Max, a deal that will reshape the entertainment landscape and significantly expand the streamer’s footprint across film, television, and theatrical distribution. The transaction, approved unanimously by both companies’ boards, marks Netflix’s largest acquisition to date and positions it as the owner of some of Hollywood’s most influential franchises, including Game of Thrones, The Sopranos, The Wizard of Oz, and the DC universe.
Under the terms, Netflix will pay $27.75 per WBD share—$23.25 in cash and $4.50 in Netflix stock. The companies confirmed that Warner Bros. Discovery will be split into two separate entities as part of the transaction. Netflix will acquire the studios and streaming operations, while WBD’s cable networks—such as CNN, TNT, and TBS—will be folded into a separately traded public company. The transition is expected to finalize in the third quarter of 2026, pending regulatory review.
The bidding process for WBD’s assets drew substantial interest from competitors, including Paramount-Skydance and Comcast. Paramount had sought to acquire the entire company, while Comcast focused on the studio and streaming segments. The competition became tense, with Paramount accusing WBD of structuring the sale to benefit Netflix and warning of potential regulatory hurdles. Such concerns are not unfounded: consolidating Warner Bros.’ vast catalog under Netflix’s already-dominant streaming platform is likely to raise questions about market concentration and consumer choice.
For Netflix, the acquisition signals a strategic shift. The company has historically prioritized streaming over theatrical releases but now plans to maintain Warner Bros.’ existing theatrical operations. Preserving those pipelines could help Netflix navigate a changing media landscape in which cinema remains culturally significant, even as streaming continues to dominate consumption habits.
The move will also strengthen Netflix’s content library overnight, though it may come with trade-offs for subscribers. With access to some of the most valuable IP in entertainment, Netflix has hinted at the possibility of price adjustments as it absorbs new assets and integrates the Warner Bros. and HBO catalogs. Whether audiences will see tangible benefits in discovery tools, release cadence, or licensing structures remains unknown.
For WBD, the split reflects a strategic reset after years of corporate restructuring and fluctuating ambitions in streaming. Separating the cable networks into an independent company underscores how legacy linear businesses are diverging from the priorities of modern content conglomerates.
Regulators are expected to scrutinize the deal closely, particularly in light of previous debates around media consolidation and its effect on consumer pricing, creative diversity, and competition. Still, if approved, the acquisition will create one of the most expansive libraries under a single streaming platform, radically altering the competitive dynamics among Netflix, Disney, Amazon, and other global players.
