HOLLYWOOD, Calif. Dec. 5, 2025: In a landmark deal that reshapes the global entertainment landscape, Netflix and Warner Bros. Discovery (WBD) have announced a definitive agreement under which Netflix will acquire Warner Bros., consolidating storied film and television libraries, premium pay television assets and streaming properties in a single entertainment platform. The parties said the transaction carries an enterprise value of approximately $82.7 billion (equity value of roughly $72.0 billion).
The combination brings together Warner Bros.’ century-spanning catalogue from classic cinema to modern hit franchises with Netflix’s subscriber scale, distribution infrastructure and streaming-first business model. If completed, the deal would unite theatrical studios, premium television brands including HBO and HBO Max (the latter currently a major streaming service under WBD), and Netflix’s global streaming operation under one corporate roof.
Deal structure, valuation and timing
Under the terms announced, each Warner Bros. Discovery shareholder will receive a mix of cash and Netflix stock valued at $27.75 per WBD share (subject to a collar mechanism). Specifically, shareholders are to receive $23.25 in cash plus Netflix common stock valued at approximately $4.50 per share, with the stock component governed by a collar that adjusts the exact share exchange ratio depending on Netflix’s closing volume-weighted average price prior to closing.
The companies said the transaction is contingent on the previously announced separation of WBD’s Global Networks business the Discovery Global unit containing certain television networks, sports and news assets which is expected to be carved out into a new, publicly traded company. That separation is slated to be completed before the merger closes; the parties estimate the combined transaction process will require roughly 12–18 months and remain subject to regulatory clearances, shareholder approvals and customary closing conditions.
Strategic rationale: scale, libraries and creative opportunity
Executives from both firms framed the deal as mutually complementary. For Netflix, the acquisition would significantly enlarge its owned content library, add high-profile IP and expand production capabilities. For Warner Bros., the marriage to Netflix’s worldwide streaming footprint promises broader distribution and more direct monetization opportunities for its franchises.
“Our objective is to bring even more stories to audiences everywhere,” said Netflix leadership in a joint statement. The company highlighted that combining Warner Bros.’ franchises spanning iconic titles and contemporary tentpoles with Netflix originals can create expanded creative possibilities, broaden reach and deliver consumers deeper entertainment choices.
WBD’s management described the agreement similarly, calling it a way to preserve Warner Bros.’ creative legacy for future generations while leveraging Netflix’s scale to accelerate global access and investment in new content. Both sides emphasized plans to maintain Warner Bros.’ operational structure, including theatrical releases, and to protect existing creative teams and studio operations.
Consumer impact: more content, more choice with open questions
From a consumer perspective, the immediate implication is a vastly larger consolidated catalogue available to Netflix members over time. The addition of HBO and HBO Max programming long regarded as premium scripted television could reshape subscriber expectations about variety and prestige content on a single platform.
Yet the deal also raises practical questions: how will legacy licensing agreements, regional content rights and ongoing studio distribution deals be reconciled? Will theatrical release windows change? How soon will HBO programming be fully integrated into Netflix’s user experience? The companies said they expect to preserve theatrical release operations and to map content strategies with an aim to provide more choice and value, but acknowledged complex rights and regulatory matters must be resolved before consumers see the full post-merger benefit.
Industry and creative community implications
Analysts note this acquisition could be among the most consequential consolidations in media history. By combining a leading independent streamer with an established Hollywood studio, the transaction aims to strengthen production capacity in the U.S., support ongoing original content investments and create additional roles across production, post-production and distribution.
Executives emphasized potential benefits for the creative community: more storytelling platforms, renewed investment in franchises and the chance for creators to work across a broader set of properties. At the same time, industry stakeholders will closely watch integration plans, union negotiations and how the combined company balances theatrical, streaming and international release strategies.
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Financial outlook and synergies
Netflix projected that the combination would be accretive to GAAP earnings per share within approximately two years of closing and identified targeted cost savings between $2 billion and $3 billion annually by the third year post-closing. The companies expect the broader content and studio capabilities to drive increased engagement, membership growth and long-term revenue upside.
To finance the transaction, the agreement includes a mix of cash and stock consideration, and participating banks have committed financing support. Moelis & Company served as financial advisor to Netflix, while major banks and legal advisors supported both parties on the complex deal structure.
Regulatory hurdles, shareholder approvals and risks
Both companies cautioned that the deal is subject to extensive regulatory review in multiple jurisdictions, as well as approval by WBD’s shareholders. Antitrust authorities in the United States and abroad may scrutinize potential competitive impacts, particularly related to the scale of combined content ownership and distribution reach.
Executives stressed that forward-looking statements in the companies’ notices reflect assumptions and expectations and that outcomes could differ materially due to a variety of risks including regulatory obstacles, integration challenges, shifts in consumer behavior and other customary transactional uncertainties.
Libraries and franchises involved
The consolidation would bring into the Netflix fold some of the world’s most recognizable entertainment properties and extensive library titles spanning film and television. The announced scope includes legacy films and hit series, theatrical franchises and HBO’s premium slate a combination that could reshape catalog offerings for subscribers globally.
What to watch next
Key milestones to monitor in the coming months include: the completion of WBD’s Global Networks separation, the filing and mailing of proxy and registration statements to WBD shareholders, the timing and outcome of regulatory reviews, and detailed integration plans outlining how content, distribution and studio operations will be managed post-closing.
Netflix is hosting a webcast and conference call to discuss the announcement and provide additional details to investors and press. Both companies urged investors and stakeholders to review forthcoming SEC filings and proxy materials for complete information, including descriptions of risks, governance matters and advisor arrangements.
Industry reaction and market chatter
Market reaction was immediate: analysts praised the strategic logic of scale and library depth but flagged regulatory complexity. Studios, media executives and creative professionals are expected to engage actively in the process, with careful attention to labor, licensing and distribution arrangements that will shape the merged company’s future.
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Conclusion
The proposed acquisition of Warner Bros. by Netflix represents a dramatic step toward content consolidation on a global scale. If regulators and shareholders approve the transaction and the necessary structural separations proceed as planned, the combined company will wield unprecedented library power and production capability. That said, the path to closing is lengthy and conditional — and the industry, regulators and creative community will be watching closely as this major media transformation moves forward.
Reporting note: This article is based on the companies’ joint announcement and public materials released on Dec. 5, 2025. The transaction remains subject to customary closing conditions, regulatory approvals and WBD shareholder consent. Readers are advised to consult the official filings and investor statements for complete details.
