Highlights
- Netflix acquires Warner Bros for $82.7B, securing massive franchises like the DC Universe and Harry Potter.
- The streaming giant expands its gaming presence significantly as it acquires ' top-tier development studios.
- Expected to close in 2026, the historic deal ensures Netflix acquires Warner Bros' scripted content while news networks spin off.
In a seismic shift that will redefine the global entertainment landscape, Netflix has officially agreed to acquire the studio and streaming assets of Warner Bros. Discovery. Announced on Dec 5, 2025, the historic deal is valued at a staggering $82.7 billion USD. The acquisition merges the world's largest streaming service with one of Hollywood's most prestigious studios, bringing iconic franchises like Harry Potter, Game of Thrones, and the entire DC Universe under the same roof as Stranger Things and Squid Game.
Crucially for the gaming industry, the deal includes the acquisition of Warner Bros.’ entire games division. Netflix will take ownership of major development houses, including Rocksteady Studios, NetherRealm Studios, TT Games, Avalanche Software, and WB Games Montréal.
While Netflix’s official announcement did not detail specific plans for these studios, this move places the developers behind Batman: Arkham, Mortal Kombat, and Hogwarts Legacy under the Netflix banner, significantly expanding the streaming giant's reach in the interactive entertainment market.
Netflix Acquires Warner Bros: The Financial Breakdown
The financial structure of the agreement is massive. Netflix secured the deal by outbidding major rivals like Comcast and Paramount, agreeing to pay $27.75 per share for the company. This price comprises $23.25 in cash and $4.50 in Netflix stock for every share owned by Warner Bros. Discovery shareholders.
The total enterprise value sits at roughly $82.7B, which accounts for Warner Bros.' assumed debt, while the direct equity value is approximately $72B. Netflix expects the deal to be profitable by the second year and aims to save between $3B annually in operational costs within three years of closing.
This union creates what analysts are calling a "streaming Goliath." Netflix, which currently boasts 300M paid subscribers, will integrate the HBO and HBO Max libraries into its platform, offering a unified login and discovery experience. This combines Warner Bros.' 102-year-old library of classics like Casablanca and The Wizard of Oz with modern Netflix hits.
Netflix Co-CEO Ted Sarandos stated that by combining Warner’s library with Netflix’s culture-defining titles, they will "give audiences more of what they love and help define the next century of storytelling."
However, not all of Warner Bros. Discovery is moving to Netflix. The agreement involves a complex split where the cable news and reality TV networks will be spun off into a new, independent company called "Discovery Global".
The separate entity will retain ownership of CNN, the Discovery Channel, and TNT Sports in the United States. This strategic move effectively separates the scripted "studio" business, which Netflix wants, from the linear "cable" business.
The deal faces a long road to completion, with finalization expected in the third quarter of 2026, roughly 12 to 18 months from now. Both companies' boards have unanimously approved the transaction. Warner Bros. Discovery CEO David Zaslav celebrated the move, noting that it ensures "people everywhere will continue to enjoy the world’s most resonant stories for generations to come."
