Netflix Acquires Warner Bros. Discovery in Historic $82.7 Billion Deal

Netflix has announced a definitive agreement to acquire Warner Bros. Discovery's film and television studios, along with its streaming services—including HBO and HBO Max—in a cash-and-stock transaction valued at approximately $82.7 billion. This landmark deal, disclosed on December 5, 2025, is poised to significantly reshape the entertainment industry by combining Netflix's extensive streaming platform with Warner Bros.' rich content portfolio.

Under the terms of the agreement, Warner Bros. Discovery shareholders will receive $23.25 in cash and $4.50 in Netflix common stock for each share of Warner Bros. Discovery common stock owned at the closing of the transaction. The acquisition encompasses Warner Bros.' film, television, and video game studios, HBO/HBO Max, DC Entertainment/DC Studios, and distribution, publishing, and licensing divisions. Notably, the deal excludes Warner Bros. Discovery's linear networks, which are set to be spun off into a separate entity named Discovery Global prior to the acquisition's completion, expected in the third quarter of 2026.

This acquisition grants Netflix control over major franchises such as "Game of Thrones," "Harry Potter," and the DC Universe, significantly enhancing its content library. By integrating Warner Bros.' assets, Netflix aims to strengthen its competitive edge in the streaming industry, offering a more diverse and extensive content portfolio to its global subscriber base.

The merger has raised significant antitrust concerns due to the potential market dominance of the combined entity. U.S. President Donald Trump expressed apprehension over the deal, stating, "They have a very big market share, and when they have Warner Bros., you know, that share goes up a lot... It could be a problem." President Trump confirmed his involvement in the review process, emphasizing the need to assess the competitive implications of the merger.

The U.S. Department of Justice's antitrust division is expected to closely examine the deal. President Trump confirmed his involvement in the review process, emphasizing the need to assess the competitive implications of the merger.

Rival companies, including Paramount Skydance and Comcast, had also bid for Warner Bros. Discovery's assets but were outbid by Netflix. Paramount Skydance, whose CEO David Ellison is the son of Oracle co-founder and Trump supporter Larry Ellison, expressed concerns over the selection process, potentially setting the stage for further bids or a hostile takeover.

The announcement stunned Wall Street, with analysts noting the low probability they had assigned to such an outcome. Citi analyst Jason Bazinet admitted, "It was my lowest-probability outcome... Actually, we only had a 5% likelihood that this transaction would be consummated."

Following the announcement, Netflix's stock (NFLX) experienced a slight decline, trading at $100.24, down 2.97% from the previous close. Conversely, Warner Bros. Discovery's stock (WBD) saw an increase, trading at $26.08, up 6.19% from the previous close.

The entertainment industry has witnessed significant mergers in the past, such as Disney's acquisition of 21st Century Fox in 2019. However, the scale and implications of Netflix's acquisition of Warner Bros. Discovery are unprecedented, potentially setting a new benchmark for industry consolidation.

Netflix's acquisition of Warner Bros. Discovery represents a pivotal moment in the entertainment industry, with far-reaching implications for market dynamics, regulatory scrutiny, and consumer experiences. As the deal progresses through the necessary approvals, stakeholders across the industry will be closely monitoring its developments.