Netflix to acquire Warner Bros for $72bn 

Netflix has struck a definitive agreement to acquire Warner Bros Discovery, including its film and television studios HBO Max and HBO, following a “competitive” process which saw speculation rival streamer Paramount was close to buying the 102-year-old entertainment business. 

The deal is worth $72bn (£54bn) in equity value, with a total enterprise value or around $82.7bn (£62bn), Netflix confirmed in a statement today (5 December). The deal is expected to complete in Q3 2026. 

It will bring iconic Warner Bros IP under Netflix’s ownership, including the Harry Potter franchise, Friends – which was expected to leave Netflix by the end of 2025 – and Game of Thrones.  

Warner Bros Discovery previously announced the separation of it Global Networks division, Discovery Global, into a new publicly-traded company, which is expected to be complete in Q3 2026. The transaction is expected to close after this happens.

‘Cut through in culture’: How Netflix creates ‘effective’ brand partnerships 

“We have the innovation, global reach and the best-in-class streaming service to bring these franchises, brands, shows and movies to a larger audience than ever before, and that’s why we think this deal makes so much sense,” Ted Sarandos, co-CEO of Netflix told investors today.  

The two businesses “really do complement each other together,” he added, touching on how it will bring “even more value and choice” to customers and will bring Netflix “closer to being the most loved and the most valued entertainment company” in the world.  

Future of entertainment

Addressing the future of Netflix’s ads business – which reached 190 million monthly viewers last month – co-CEO Greg Peters said he is “very happy” with performance so far and expects the purchase to deliver further “value” through increased engagement.

“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,” said Peters.  

Netflix expects Warner Bros’ current operations to remain in place, including the studio’s commitment to theatrical releases.

On a call with investors today, Peters said it was “quite early to get into the specifics” of how Netflix will tailor its offering to consumers following the purchase.  

Regarding the deal being approved by regulators, Sarandos is confident the “pro-consumer, pro-innovation” deal will be approved following a “competitive and rigorous” process.