Netflix to acquire Warner Bros.’ studios and HBO Max in landmark $72 billion deal
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Netflix (NFLX) is set to acquire Warner Bros.’ (WBD) studio and streaming assets in a $72 billion deal, plus debt, bringing together Hollywood’s most storied film and TV studio and the world’s largest streaming platform in one of the biggest entertainment deals in history.
The companies announced Friday they’ve entered into a definitive agreement, subject to regulatory approval, that will give Netflix control of Warner Bros.’ film and TV studios, as well as HBO and HBO Max.
The deal is set to close after WBD completes its previously announced plan to separate its Global Networks division into a standalone publicly traded company.
Under that restructuring, expected in summer 2026, Netflix would take over the studios and streaming assets, while the newly created Discovery Global entity would house CNN and WBD’s portfolio of cable networks.
Netflix shares fell over 4% on the news, while WBD saw modest gains in early premarket trading.
Once completed, the acquisition would combine Warner Bros.’ century-long library and hit franchises — like “Harry Potter,” “DC,” “The Sopranos,” “Game of Thrones,” “Friends,” “The Big Bang Theory,” and “Casablanca” — with Netflix originals including “Stranger Things,” “Wednesday,” “Bridgerton,” and “Squid Game.”
Netflix said it intends to maintain Warner Bros.’ current operations, including theatrical film releases.
The move is notable because Netflix has historically been a builder, not a buyer. The streamer has never executed a major acquisition and has leaned heavily into developing its own IP.
As of Q3, 63% of Netflix’s content assets were originals, and no single title represents more than 1% of total viewing, JPMorgan analyst Doug Anmuth highlighted in a recent note. It's a level of diversification that cushions Netflix from consolidation elsewhere in the industry.
But the landscape is changing. With three subscale streamers — HBO Max, Paramount+, and Peacock — fighting for relevance, analysts say the only path to survival is scale, and Netflix may be seizing the chance to prevent a rival from gaining Warner Bros.’ intellectual property.
“Our mission has always been to entertain the world,” Netflix co-CEO Ted Sarandos said in a press release. “Together, we can give audiences more of what they love and help define the next century of storytelling."
Contentious battle for WBD
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In the months leading up to Friday's announcement, Paramount (PSKY), Netflix, and Comcast (CMCSA) all submitted bids for WBD assets. Paramount even challenged the fairness of WBD’s process in a letter reviewed by CNBC earlier this week, an unusual public escalation that underscored how critical this deal was for the company’s future.
Citi’s Jason Bazinet warned that Paramount was “half-pregnant” in streaming and needed WBD more than any other bidder to reach scale. He gave Paramount 60% odds earlier this week.
He also noted that while all three bids could likely clear antitrust review, Netflix and Comcast would face greater regulatory scrutiny because of their scale, whereas Paramount would have had the easier path. It’s a reminder that the regulatory chapter of this merger is only beginning.
And the saga may not be over: Paramount and Comcast could still try to reengage or challenge the process as the deal winds its way through regulators.
Even so, Netflix held the clearest advantage in one crucial area: cash.
The final agreement includes both cash and stock, with each WBD shareholder receiving $23.25 in cash and $4.50 in Netflix shares.