In one of the largest media mergers ever, Netflix has agreed to acquire Warner Bros. Discovery's core studio and streaming assets. The companies announced a definitive agreement on December 5, 2025. The deal will unite Netflix's global streaming platform with Warner Bros.' century-long library of iconic films and shows.
The transaction carries a total enterprise value of $82.7 billion. Under the terms, each Warner Bros. Discovery shareholder will receive $23.25 in cash and approximately $4.50 in Netflix stock for each share they own. This values the deal at $27.75 per WBD share. The agreement follows a competitive bidding process where Netflix emerged with the highest offer.
The acquisition will only proceed after Warner Bros. Discovery completes a planned separation of its other business units. This includes splitting off its global networks division into a new public company called Discovery Global. That separation is expected to finish in the third quarter of 2026. The Netflix transaction would close sometime in the following 12 to 18 months.
Netflix will acquire the Warner Bros. film and television studios, the HBO and HBO Max streaming services, and their vast content libraries. This includes legendary franchises like Harry Potter, Game of Thrones, the DC Universe, and Friends. It also adds classic films from Casablanca to The Wizard of Oz.
Analysts call the Warner Bros. studio a "crown jewel" of intellectual property. Bank of America analyst Jessica Reif Erlich noted the deal gives Netflix a deep set of well-known IP. It also provides major physical production capacity. Netflix has traditionally grown through its own original content. This marks a major strategic shift toward acquiring established franchises.
The deal also brings millions of streaming subscribers. Warner Bros. Discovery reported having 128 million streaming subscribers globally at the end of September 2025.
Netflix's winning bid concluded a fast-moving auction for the assets. Rival media company Paramount Global had also aggressively pursued Warner Bros. Discovery. Paramount's bid, which was for the entire company including CNN, was valued closer to $27 per share.
In the final stages, Paramount protested the sales process. The company's lawyers sent a letter to WBD leadership expressing "grave concerns". They argued the process was unfair and seemed designed to favor Netflix. Paramount also claimed Netflix would face major regulatory hurdles that it could avoid.
Despite the protest, the boards of both Netflix and Warner Bros. Discovery unanimously approved the deal. Reports indicate Netflix agreed to a $5 billion breakup fee should regulators block the transaction.
Netflix co-CEO Ted Sarandos said the merger helps fulfill the company's mission to entertain the world. He stated that combining the libraries would give audiences more of what they love. Co-CEO Greg Peters said the acquisition would improve Netflix's offerings and accelerate its business for decades.
Warner Bros. Discovery CEO David Zaslav said the deal combines two great storytelling companies. He stated it would ensure people everywhere continue to enjoy the world's most resonant stories. According to reports, Zaslav's employment agreement was recently restructured to account for a potential sale of the company.
Netflix stated it expects to maintain Warner Bros.' current operations. This includes a commitment to continue theatrical releases for films. The company also projected significant cost savings of $2 to $3 billion per year by the third year after closing.
The merger faces a complex and lengthy review by government regulators. It must be approved by antitrust authorities in the United States and other major regions like the European Union and the United Kingdom. Senator Mike Lee raised concerns on social media. He wrote that the deal "should send alarm to antitrust enforcers around the world".
The political environment adds another layer. Paramount executives argued their offer had a clearer path to approval. They pointed to a positive relationship between Paramount's leader, David Ellison, and the Trump White House. Analysts note that Netflix may be prepared for a prolonged legal fight to get the deal done.
The deal's sheer size and market impact will be a focus for regulators. A Bank of America analysis stated plainly: "If Netflix acquires Warner Bros., the streaming wars are effectively over". It concluded Netflix would become the undisputed global powerhouse of Hollywood.
The merger will reshape the competitive media landscape. It combines the world's leading subscription streamer with one of its largest content creators. For consumers, Netflix promises more choice and greater value from a combined library. For the industry, it creates a production and distribution giant.
The deal arrives as Warner Bros. Discovery was already executing a turnaround. The company's stock had fallen sharply after its formation in 2022. It hit a low of $7.52 before rumors of a sale sparked a rally. Its shares reached a 52-week high as the Netflix deal was announced.
The transaction leaves other media companies like Paramount and Comcast in a changed market. It also raises questions about the future of traditional theatrical movie releases. Netflix has favored shorter exclusive windows for theaters, a point of contention with major theater chains.