Hollywood, Dec. 5, 2025: In one of the biggest entertainment deals in history, Netflix announced it will acquire Warner Bros. from Warner Bros. Discovery (WBD) in a cash-and-stock transaction valuing the studio at $82.7 billion. The agreement brings together Netflix’s global streaming reach with Warner Bros.’ century-old legacy of filmmaking and hit franchises.
Under the deal, Netflix will take ownership of Warner Bros.’ film and TV studios, HBO, HBO Max, and a vast catalog that includes Game of Thrones, The Sopranos, Harry Potter, Friends, The Big Bang Theory, The Wizard of Oz, and the DC Universe. These titles will join Netflix’s slate of global hits such as Stranger Things, Money Heist, and Bridgerton.
Netflix said it will maintain Warner Bros.’ current operations, including theatrical releases, while integrating HBO’s premium programming into its global service.
Hollywood Shake-Up: Netflix Acquires Warner Bros., HBO and DC Universe
Netflix co-CEO Ted Sarandos said the merger will allow the company to “entertain the world” with an unmatched library of classic and modern franchises. Co-CEO Greg Peters added that the combined strength of both companies will expand production capacity, create new opportunities for creators, and drive long-term shareholder value.
WBD CEO David Zaslav said the deal unites “two of the greatest storytelling companies in the world,” ensuring Warner Bros.’ iconic stories reach wider audiences for generations.
The Entertainment Service firm expects at least $2–3 billion in annual cost savings by year three and projects the deal will boost its earnings by year two. The company also says the acquisition will strengthen the entertainment industry overall by expanding jobs, production scale and global distribution.
The transaction values WBD at $27.75 per share, including $23.25 in cash and $4.50 in Netflix stock for each share. The stock component is subject to a price collar. The deal is expected to close in 12–18 months, after WBD completes the separation of its Global Networks division—Discovery Global—by Q3 2026.
Boards of both companies have unanimously approved the merger. The agreement now awaits regulatory clearance and WBD shareholder approval.
The Entertainment Service will discuss the acquisition during a webcast today at 5 a.m. PT / 8 a.m. ET.