Netflix is ready to chill with Warner Bros. Discovery for a cool $82.7 billion.
In one of the largest mergers in Hollywood history, the famed studio accepted a cash and stock offer from the streaming giant to acquire WBD’s film and television studios along with HBO and HBO Max, the two companies announced on Friday, Dec. 5.
WBD put itself up for sale weeks ago, touching off a bidding war that saw Comcast and Paramount Skydance jockeying for a chance to acquire WBD.
Rhe studio agreed to the Netflix offer, in a deal that will likely change the entertainment landscape.
The agreement gives the streamer control of the Superman, Batman, and Harry Potter franchises, along with titles like Barbie and Sinners. Warner Bros. television properties include The Jennifer Hudson Show and Extra TV, plus library titles like Friends, which generates sizable profits from national syndication.
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“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.”
The deal was unanimously approved by the boards of both Netflix and Warner Bros. Discovery, and will see a spin-off of Discovery Global properties, including CNN, TNT Sports, Discovery, Discovery+, OWN, and Bleacher Report.
“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,” said Warner Bros. Discovery President and CEO David Zaslav
The deal values Warner Bros. at $27.75 a share, or about $72 billion in equity plus debt, bringing the total to $82.7 billion. Netflix said it expects to close the agreement in the third quarter of 2026.
Although some industry analysts say it will be challenging to get the Trump administration to approve the merger, especially since Trump favors the billionaire Ellison family which in August 2025 purchased Paramount Global.
If the merger wins approval, there will be redundancies and likely layoffs.
Many Hollywood insiders have expressed opposition to merging the new media giant with the legacy studio, saying it would kill competition.
The Directors Guild of America on Friday said the deal “raises significant concerns.”
“We believe that a vibrant, competitive industry — one that fosters creativity and encourages genuine competition for talent — is essential to safeguarding the careers and creative rights of Directors and their teams,” the DGA said. “We will be meeting with Netflix to outline our concerns and better understand their vision for the future of the company.”
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