Netflix Makes Historic $82.7 Billion Play to Acquire Warner Bros. and HBO

Netflix has announced a definitive agreement to acquire Warner Bros. Discovery. The deal values the combined entity at a staggering $82.7 billion. This seismic move was confirmed on December 5, 2025. It promises to reshape the entire entertainment landscape.

The cash and stock transaction values Warner Bros. Discovery at $27.75 per share. According to Tudum, Netflix’s official news site, the total equity value is approximately $72 billion. This merger unites two of the world’s largest content libraries under one roof.

Uniting Storytelling Giants for a New Era

The deal brings Warner Bros.’ century-old film legacy together with Netflix’s digital dominance. Netflix co-CEO Ted Sarandos called it a combination of “two of the greatest storytelling companies.” He emphasized a shared mission to entertain global audiences with an unparalleled content catalog.

Warner Bros. Discovery CEO David Zaslav echoed this vision. He stated the merger would ensure people everywhere enjoy resonant stories for generations. The transaction received unanimous approval from both companies’ boards of directors. This signals strong internal confidence in the strategic fit.

The acquisition includes all Warner Bros. film and television studios. It also encompasses the HBO and HBO Max streaming services. This grants Netflix immediate control over iconic franchises like Harry Potter and celebrated series like “Friends.”

Market Impact and Streaming’s Future Consolidation

This merger signals a major shift toward consolidation in the streaming industry. Analysts predict it will pressure other media giants to pursue similar scale. The combined library creates a nearly insurmountable content moat for competitors.

For consumers, the immediate future may bring simplified subscription choices. The long-term effect on pricing, however, remains uncertain. Industry reports suggest regulatory scrutiny is likely given the deal’s massive size and market influence.

The move solidifies Netflix’s position as the definitive global entertainment hub. It merges Netflix’s originals with Warner’s deep archive of classics and modern blockbusters. This fundamentally alters the competitive dynamics with rivals like Disney+, Amazon Prime, and Apple TV+.

This landmark Netflix acquisition of Warner Bros. represents the largest media merger in history. It fundamentally redefines the future of at-home entertainment. The industry will be watching closely as these two giants begin their integration.

Thought you’d like to know

What is the total value of the Netflix and Warner Bros. deal?

The total enterprise value of the acquisition is approximately $82.7 billion. The equity value is about $72 billion. Shareholders will receive $27.75 per Warner Bros. Discovery share.

Will HBO Max content move to Netflix?

Yes. The acquisition includes the HBO Max streaming service and its entire library. Iconic HBO series and Warner Bros. films are expected to be integrated into Netflix’s platform.

Does the deal need government approval?

Such a large transaction will almost certainly face regulatory review. Authorities will examine its impact on market competition before granting final approval for the merger to proceed.

How will this affect my Netflix subscription price?

Netflix has not announced immediate pricing changes. Long-term, acquiring vast new content could influence future subscription costs, but any changes are not expected imminently.

Who will lead the combined company?

Statements indicate Netflix’s existing leadership, including co-CEO Ted Sarandos, will steer the integrated company. Warner Bros. Discovery CEO David Zaslav praised the union but his specific future role was not detailed.