Netflix to Acquire Warner Bros. for $82.7 Billion

Netflix announced this morning that it was acquiring Warner Bros. Discovery for $82.7 billion, a deal that will transform the streaming service into an entertainment juggernaut. Netflix will also acquire HBO and HBO Max as part of the transaction and get its hands on massively popular franchises, including Game of Thrones, the DC universe, and Harry Potter.

The two companies expect the transaction to close in 12 to 18 months after the previously announced separation of the linear networks from Discovery Global, which is expected to be completed in Q3 2026. The acquisition is also subject to required regulatory approvals, approval of WBD shareholders and other customary closing conditions.

“This acquisition will improve our offering and accelerate our business for decades to come,” said Greg Peters, co-CEO of Netflix. “Warner Bros. has helped define entertainment for more than a century and continues to do so with phenomenal creative executives and production capabilities. With our global reach and proven business model, we can introduce a broader audience to the worlds they create—giving our members more options, attracting more fans to our best-in-class streaming service, strengthening the entire entertainment industry and creating more value for shareholders.”

Netflix said in the press releases that it plans to maintain Warner Bros.’ current operations, including theatrical releases for films. However, Netflix expects that the acquisition of Warner Bros.’ library of shows and movies will allow the company to “optimize its plans for consumers, enhancing viewing options and expanding access to content.”

The acquisition, if it gets regulatory approval, will have a major impact on the entertainment industry: Netflix plans to “significantly expand U.S. production capacity and continue to grow investment in original content.” The creative community will also get “more opportunities to work with beloved intellectual property, tell new stories and connect with a wider audience than ever before,” the company said today.

Lastly, Netflix also believes that adding Warner Bros content will “attract and retain more members, drive more engagement and generate incremental revenue and operating income.” As we’ve seen with Microsoft’s $68 billion acquisition of Activision Blizzard, however, we should probably get ready for price increases.