Netflix to acquire Warner Bros, HBO, and HBO Max in $82.7 billion deal

Netflix has reached a landmark agreement to acquire Warner Bros, including its storied film and television studios, HBO, and HBO Max in a deal valued at $82.7 billion. The acquisition, structured as a cash-and-stock transaction, prices Warner Bros. 

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The agreement follows months of tense industry speculation and a heated bidding war involving major media giants such as Comcast and Paramount Skydance. Netflix ultimately emerged as the winning bidder, presenting what insiders have described as the most compelling and strategically aligned offer for WBD’s studio and streaming assets.

The acquisition, according to reports, excludes traditional linear-TV channels, which will be grouped under Discovery Global once the spin-off is complete.

Netflix Co-CEO Ted Sarandos described the merger as an opportunity to combine “culture-defining titles with Warner Bros.’ legendary library” to serve audiences on a larger global scale.

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Industry analysts believe the acquisition could help Netflix expand its dominance by strengthening both its production capability and its streaming catalog. The company expects $2–3 billion in annual cost savings within three years and aims for the deal to boost earnings by its second year post-closing. 

The deal has not come without controversy. Paramount Skydance issued a strongly worded letter criticizing the WBD sale process as “tainted” and unfair, questioning whether shareholders were given a fully transparent and competitive bidding environment.

Other competitors have expressed concern that the consolidation of two major streaming and content powerhouses could tilt the industry dangerously toward a single dominant player.

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Under the terms of the agreement, WBD shareholders will receive $23.25 in cash and $4.50 in Netflix stock per share, based on a collar that adjusts the stock component depending on Netflix’s market performance. 

Once the regulatory and shareholder approvals are secured, and the Discovery Global spin-off is complete, the merger will move into its final closing phase, a process expected to take roughly 12 to 18 months.