Los Angeles | December 18, 2025
Netflix has agreed to acquire Warner Bros. Discovery’s film and television studios, HBO, and HBO Max streaming assets in one of the largest entertainment deals in history, valued at $72 billion in equity and roughly $82.7 billion enterprise value including debt. This blockbuster cash-and-stock transaction values Warner Bros. shares at $27.75 each, with shareholders receiving $23.25 in cash and $4.50 in Netflix stock per share.
Bidding War and Strategic Rationale
The deal comes after a weeks-long bidding war, with Netflix outbidding rivals Paramount Skydance, which had offered up to $30 per share in a hostile $108.4 billion bid for the entire company, and Comcast, which had also expressed interest. Warner Bros. Discovery’s board unanimously recommended Netflix, citing stronger financing, reduced regulatory hurdles, and better long-term shareholder value.
Netflix co-CEOs Ted Sarandos and Greg Peters reassured staff that the company will maintain theatrical releases, third-party production, and creative independence, while realizing $2–3 billion in annual cost savings by year three through technology and support integration. Analysts expect the acquisition to be earnings accretive by the second year.
Iconic Franchises and Combined Subscriber Base
With the acquisition, Netflix gains control of Warner Bros.’ iconic franchises, including:
Harry Potter and the Wizarding World
Game of Thrones
DC Universe characters like Batman, Superman, and Wonder Woman
Friends, The Matrix, Lord of the Rings, and Looney Tunes
Classic films such as Casablanca
This expands Netflix’s global subscriber base of 300+ million by merging it with HBO Max’s ~128 million subscribers, effectively creating a streaming superpower with unparalleled content and franchise depth.
Spin-Off and Regulatory Considerations
Warner Bros. Discovery will spin off its cable networks—including CNN, TNT Sports, Discovery Channel, and Bleacher Report—into a new public entity, Discovery Global, expected in Q3 2026. The acquisition is expected to close 12–18 months after the spin-off, subject to US and EU regulatory approvals. Concerns from industry groups include:
Antitrust scrutiny (combined US streaming share ~9%)
Potential increase in subscription prices
Reduced consumer choice
Impact on theatrical releases and independent distributors
Even President Donald Trump, while expressing caution, praised the leadership handling the deal. Industry analysts note that the merger reflects a broader trend of streaming consolidation amid declining cable TV revenues.
Financial and Strategic Implications
The deal includes breakup fees of $5.8 billion for Netflix and $2.8 billion for Warner Bros.. Expected benefits and impacts:
$2–3 billion annual cost synergies via tech, marketing, and support overlaps
Strengthened global content library, boosting international competitiveness
Increased subscriber engagement and retention through combined offerings
Potential leverage for theatrical distribution, merchandising, and franchise expansions
Industry Reaction and Future Outlook
While Paramount Skydance and Comcast voiced disappointment, Warner Bros. Discovery has committed to Netflix, rejecting hostile bids. Critics, including the Writers Guild of America and Cinema United, have raised concerns about consolidation reducing creative diversity. Analysts suggest the acquisition redefines Hollywood’s content landscape, cementing Netflix’s position as the dominant streaming and production powerhouse.
Executives emphasize continued investment in original content, theatrical releases, and global market expansion, with franchises like DC Universe and Game of Thrones expected to drive multiple spin-offs and merchandise opportunities. Observers expect the merger to reshape subscriber expectations, studio production strategy, and competitive dynamics across streaming platforms worldwide.
Key Facts & People Involved
Deal Value: $72B equity / $82.7B enterprise; $27.75/share ($23.25 cash + $4.50 Netflix stock)
Assets Acquired: Warner Bros. studios, HBO/HBO Max, film & TV franchises (Harry Potter, DC Universe, Game of Thrones, Friends, The Matrix)
Excluded Assets: Cable networks (to be spun off as Discovery Global)
Bidders: Netflix (winner); Paramount Skydance (hostile $108.4B bid); Comcast
People: Netflix co-CEOs Ted Sarandos & Greg Peters; Warner Bros. Discovery CEO David Zaslav; Paramount CEO David Ellison; President Donald Trump
Expected Impacts: Streaming dominance, theatrical and creative strategy adjustments, $2–3B in synergies
