Netflix to Acquire Warner Bros. - $82.7B Deal

Netflix Acquires Warner Bros. in Landmark Deal

A truly significant event has unfolded in the streaming industry. Netflix announced on Friday the acquisition of Warner Bros., valued at $82.7 billion in enterprise value.

A Historic Merger

This deal encompasses both HBO Max and the HBO studio. It represents one of the most substantial mergers ever witnessed in the history of Hollywood filmmaking.

By undertaking this acquisition, Netflix is not only reinforcing its leading market position but also dramatically expanding its content offerings. Access to popular franchises like DC Comics, “Game of Thrones,” and “Harry Potter” will be included.

Subscriber Base and Financial Implications

Netflix currently serves over 300 million paying subscribers as of January. HBO Max, when combined with Discovery+, maintains a subscriber base of approximately 128 million.

The financial commitment from Netflix is substantial. The company is investing $72 billion, exceeding Warner Bros.’ existing market valuation of $60 billion.

Potential Regulatory Hurdles

However, the merger is not without potential obstacles. It is likely to attract scrutiny from antitrust regulators.

Concerns were previously voiced by senators Elizabeth Warren, Bernie Sanders, and Richard Blumenthal in November. They sent a letter to the Justice Department Antitrust Division, suggesting any agreement could be perceived as influenced by political factors.

Industry Reactions

Various stakeholders within the industry are also sharing their perspectives. Reports from Variety indicate that an anonymous group has urged Congress to publicly oppose Netflix’s bid through a letter.

Background to the Sale

Warner Bros. Discovery initiated a sale process in October, citing significant debt and underperforming streaming growth. Several companies expressed interest, with Paramount initially considered the most likely buyer.

Timeline and Completion Details

The acquisition is projected to be finalized in the third quarter of 2026. This timeline depends on Warner Bros. Discovery’s planned separation from Discovery Global, which includes networks like TNT and CNN.

The transaction, involving both cash and stock, is anticipated to conclude within a timeframe of 12 to 18 months.

Key Takeaways

• Netflix has acquired Warner Bros. for $82.7 billion.
• The deal includes HBO Max and the HBO studio.
• The merger faces potential antitrust scrutiny.
• Completion is expected in the third quarter of 2026.