Netflix has agreed to buy Warner Bros. Discovery's streaming and movie studios business for an enterprise value of $82.7 billion, following a bidding war. The deal, pending regulatory and shareholder approvals, will combine Netflix's 301.63 million subscribers with Warner Bros. Discovery's 128 million. It promises cost savings and broader content access but raises concerns over market consolidation and impacts on theaters.
Warner Bros. Discovery (WBD) announced on December 5, 2025, that Netflix emerged victorious in a bidding war against contenders like Paramount Skydance and Comcast. The acquisition targets WBD's streaming and studios businesses, including film and TV libraries, HBO Max, and the HBO channel, after WBD completes a split into Warner Bros. and Discovery Global in Q3 2026. The equity value stands at $72 billion, with a total enterprise value of $82.7 billion, exceeding WBD's overall $60 billion market value, as noted by NBC News.
Netflix anticipates gains in subscribers, engagement, and annual cost savings of $2–3 billion by the third year. Co-CEO Greg Peters stated that Netflix's global reach and business model will deliver Warner Bros. content to a broader audience. The deal grants Netflix control over major franchises like DC Comics, Game of Thrones, and Harry Potter. For now, HBO Max will remain a separate service, per Variety, though future bundling or integration is possible, similar to Disney's Disney+ and Hulu approach.
Regulatory scrutiny looms large. The acquisition requires approvals from bodies like the US Department of Justice (DOJ), amid antitrust worries. Senators Elizabeth Warren, Richard Blumenthal, and Bernie Sanders urged the DOJ to base any decision on law, not political favoritism. Representative Darrel Issa warned it would enhance Netflix's market power, deeming it presumptively problematic under antitrust law. A California attorney general spokesperson echoed DOJ concerns about consolidation harming competition and consumers.
The movie theater industry expressed alarm. Cinema United CEO Michael O’Leary called for close regulatory examination of the deal's negative impacts. An anonymous group of producers claimed it would "effectively hold a noose around the theatrical marketplace" by limiting releases and licensing fees. Netflix co-CEO Ted Sarandos assured that all Warner Bros. movies will continue theatrical releases through 2029, supporting the lifecycle starting in theaters, though he criticized long exclusive windows as consumer-unfriendly. Paramount has questioned the sales process's fairness.
Plans for HBO's linear channel remain unclear, but Netflix's streaming focus suggests it may not persist long-term, with the brand likely enduring in some form.
