Netflix has reached an agreement to acquire Warner Bros. from Warner Bros. Discovery in a blockbuster deal valued at $82.7 billion. The announcement confirms months of speculation around a potential sale and signals one of the largest consolidation moves ever witnessed in the entertainment sector.

The deal mixes cash and stock, giving Warner Bros. Discovery shareholders $23.25 in cash and $4.50 in Netflix shares for each of their holdings. The arrangement prices the company at roughly $72 billion in equity value.

Completion depends on a key prerequisite: Warner Bros. Discovery must first spin off its Global Networks division into a separate publicly traded entity, Discovery Global. That process is expected to wrap up in the third quarter of 2026, setting the stage for the full acquisition to proceed.

If approved, the transaction would mark the first time Netflix takes ownership of a major legacy Hollywood studio, a remarkable milestone for a platform that started as a DVD-by-mail service.

A Century of Hollywood History Under Netflix’s Umbrella

Warner Bros., founded in the early 20th century, brings a storied archive to the table. Its catalogue includes Casablanca, The Wizard of Oz, the Harry Potter franchise, the DC Universe and some of television’s most influential series, including The Sopranos.

HBO and HBO Max are also part of the purchase, adding premium programming and long-running prestige brands to Netflix’s control once the deal closes.

Netflix says it plans to expand its production footprint in the U.S. while leaning on Warner Bros.’ established infrastructure to strengthen its global content pipeline.

Executives frame the deal as a Strategic Fusion

Netflix leaders described the acquisition as a major leap forward for their global content ambitions.

Ted Sarandos, Netflix’s co-CEO, emphasized the cultural impact of Warner Bros.’ library:

“Our mission has always been to entertain the world. Combining Warner Bros.’ incredible library of shows and movies, from timeless classics like Casablanca and Citizen Kane to modern favorites like Harry Potter and Friends, with our culture-shaping titles like Stranger Things, KPop Demon Hunters and Squid Game helps us take that even further. Together, we can give audiences more of what they love and shape the next century of storytelling.”

Co-CEO Greg Peters pointed to the long-term business benefits:

“This acquisition strengthens our offering and accelerates our growth for decades. Warner Bros. has shaped global entertainment for more than a hundred years. With our reach and proven model, we can bring their worlds to wider global audiences, deepen fan engagement, and create more value for shareholders.”

Industry Pressure and Structural Challenges

The merger arrives during a turbulent period for traditional television and streaming platforms. Cable networks have seen a steady erosion of subscribers, contributing to Warner Bros. Discovery’s decision earlier this year to simplify its structure through a corporate split.

Streaming services, meanwhile, face their own headwinds: growing competition, rising production costs and the challenge of retaining subscriber loyalty in a saturated market.

Netflix’s acquisition bid signals its intent to solidify dominance as rivals chase scale, franchises and cost efficiencies.

Regulatory hurdles ahead

A merger of this scale is likely to face a deep regulatory review in the United States and major international markets. A combined Netflix–Warner Bros. entity would command expansive influence in premium scripted content, raising possible antitrust concerns around streaming concentration and control of iconic franchises.

The companies expect the review process, along with shareholder approvals and the completion of the Discovery Global spinoff, to take between 12 and 18 months.

Moelis & Company is advising Netflix on the transaction, while Allen & Company, J.P. Morgan and Evercore are advising Warner Bros. Discovery. Executives noted that cost efficiencies are expected over time, though specific restructuring plans were not disclosed.