A dramatic shift in the global media landscape is underway as Netflix and Warner Bros. Discovery (WBD) have officially announced a definitive agreement for Netflix to acquire WBD’s prized studio and streaming division for $82.7 billion. This massive cash-and-stock transaction, which values WBD at $27.75 per share, is set to be one of the largest media consolidations in decades and will fundamentally reshape Hollywood’s power structure.
The Scope of the Acquisition
If the deal successfully navigates the complex regulatory environment, it will grant Netflix control over a century of prestigious content and production power. The acquired assets include the acclaimed streaming service HBO Max, the legendary HBO library with hits like The Sopranos and Game of Thrones, the Warner Bros. film and television studios, and control over globally recognized franchises such as Harry Potter and the entire DC Comics universe.
Netflix Co-CEO Ted Sarandos highlighted the strategic value of the merger, stating that combining Warner Bros.’ “incredible library of shows and movies—from timeless classics like Casablanca and Citizen Kane to modern favorites like Friends—with our culture-defining titles like Stranger Things…we’ll be able to do that even better.” This fusion is intended to create an extraordinary entertainment offering and significantly strengthen Netflix’s position against rivals.
Antitrust Concerns and Theatrical Future
The path to completion is expected to be lengthy and arduous, with a closing date anticipated in the third quarter of 2026, following WBD’s planned spin-off of its cable networks (including CNN and TNT) into a separate entity called Discovery Global. The immense scale of the combined entity—expected to command over 21% of US streaming viewership—has already sparked significant antitrust concerns, compelling Netflix to include an unusually large $5 billion breakup fee to signal its commitment despite regulatory risks.
Furthermore, the acquisition faces opposition from the cinema industry and certain Hollywood figures who fear Netflix’s historical aversion to wide theatrical windows. However, Netflix has publicly committed to maintaining Warner Bros.’ current studio operations and honoring existing contractual commitments for theatrical releases. The challenge for Netflix will be to integrate the production powerhouse while reassuring the creative community that it will uphold the legacy and prestige of the storied studio. For consumers, the ultimate question is how the merger will affect both subscription costs and the future of the HBO Max platform, which may eventually see its deep library folded into the Netflix service.
