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Netflix Inc. and Warner Bros. Discovery, Inc. have sealed an acquisition deal under which Netflix will take full control and ownership of Warner Bros., and its film and television studios, HBO Max and HBO, for an enterprise value of $82.7 billion. This definitive agreement marks one of the largest mergers in the U.S. film industry’s history.
This buyout unites Warner Bros.’ iconic franchises and storied libraries with Netflix’s. Netflix now has access to Warner Bros.’ well-known franchises such as “Harry Potter,” “Game of Thrones,” and “DC Comics.” Currently, HBO Max and Discovery+ have 128 million active subscribers.
Netflix, on the other hand, has over 300 million paying subscribers as of January 2025. The combination of Netflix and Warner Bros. will consolidate more than 430 million subscribers under one unified control. It will also strengthen Netflix’s market dominance and reshape its competitive dynamics across the entertainment industry.
Warner Bros. is being separated from its parent company, Warner Bros. Discovery, as a way to reduce debt and make the studio more attractive and easier to sell. The separation is expected to be completed before Netflix’s acquisition, and it will allow Warner Bros. to stand alone without the weight of Discovery’s pay-TV networks like TNT and CNN, which are declining in value.
Notably, Netflix isn’t just buying the company for $82.7 billion. Netflix is also investing $72.0 billion in Warner Bros., an equity value that exceeds Warner Bros.’ entire market valuation of $60 billion. However, the acquisition is expected to close in the third quarter of 2026, after Warner Bros. Discovery completes its separation from Discovery Global.
Both companies have given an estimated time for the transaction to be completed. The parties said the deal will be sealed completely within 12 to 18 months. The transaction combines a mix of cash and stock. It’s also worth noting that the company officially listed itself for sale in October and drew attention from multiple potential buyers, including Netflix, and Paramount was widely viewed as the leading contender.
