In a blockbuster move that’s already sending shockwaves through Hollywood, Netflix has clinched a definitive agreement to acquire Warner Bros., including its iconic film and television studios, as well as the premium cable brands HBO and HBO Max. The deal, announced on December 5, 2025, is valued at a staggering USD 82.7 billion, with an equity value of USD 72.0 billion, according to reporting from The Location Guide and BBC News. This acquisition, if completed, is poised to transform Netflix from streaming juggernaut to the undisputed dominant player in the entertainment industry, as described by the Financial Times.
Under the terms of the agreement, shareholders of Warner Bros. Discovery (WBD) will receive USD 23.25 in cash and USD 4.50 in Netflix stock for each WBD share, totaling USD 27.75 per share. The acquisition will not close until after WBD spins off its Global Networks division—including news, sports, and cable TV assets—into a new, publicly traded company named Discovery Global. This spin-off is expected to be completed in the third quarter of 2026, setting the stage for Netflix’s takeover of Warner Bros.’ storied entertainment assets.
Netflix’s purchase isn’t just about adding another studio to its portfolio. With this acquisition, Netflix will gain control of some of Hollywood’s most valuable and beloved franchises, including Harry Potter, the DC Universe, Game of Thrones, The Sopranos, Friends, and The Big Bang Theory. These titles, along with Netflix originals like Stranger Things, Squid Game, and Bridgerton, will now reside under a single corporate roof, creating a content powerhouse that few can rival.
According to Broadband TV News, Netflix intends to maintain Warner Bros.' current operations, including its theatrical releases, and will use its global streaming reach to further expand the studio’s intellectual property. HBO and HBO Max are slated to become complementary premium offerings within Netflix’s broader streaming ecosystem, rather than standing as rival services. The company is signaling a multi-tier approach that could bundle HBO’s acclaimed series with Netflix’s vast library, potentially reshaping how audiences access and pay for content.
The acquisition is expected to generate significant financial benefits for Netflix. The company projects annual cost savings of USD 2–3 billion by the third year after closing and anticipates that the transaction will be accretive to earnings per share by the second year post-closing. Such projections have caught the attention of both Wall Street and the entertainment industry, as Netflix aims to cement its position as the leading force in global media.
But the path to closing this historic deal is anything but smooth. The agreement comes after a heated bidding war that saw Paramount Skydance and Comcast also vying for control of Warner Bros. Discovery. Paramount, owned by tech billionaire Larry Ellison and his son David Ellison, had been aggressively pursuing a full takeover of WBD, including its cable networks and CNN. However, WBD’s board ultimately favored Netflix’s mostly cash proposal, despite Paramount’s public complaints about a “tilted” auction process. Paramount’s legal team even sent a letter earlier in the week accusing WBD of running a “myopic process with a predetermined outcome that favors a single bidder.”
The Ellisons haven’t taken the loss lightly. According to reporting from Vox, David Ellison, Paramount’s CEO, reportedly visited the White House to argue that the Netflix deal should be blocked on antitrust grounds. With their close relationship to U.S. President Donald Trump—a connection that’s no secret in business and political circles—the Ellisons are hoping to leverage their influence to sway regulatory scrutiny in their favor. As Vox notes, “If he’s persuasive, you could see Trump’s Department of Justice suing to block the deal—just like Trump’s DOJ sued to block the sale of Time Warner to AT&T in 2017, during his first presidency.”
Regulatory approval is indeed the next major hurdle. The deal will face intense scrutiny from competition authorities in the United States, Europe, and other key markets, given the potential for market concentration that comes with combining Netflix’s global streaming dominance and HBO’s premium subscription base with the deep library of Warner Bros. Lawmakers and industry groups had already flagged concerns about market concentration during the earlier bidding phase, and Netflix is said to be preparing for a lengthy review process. If regulators or the Trump administration decide to intervene, the fate of the deal could hang in the balance for months—or even years.
Should the deal fall through, the agreement includes a hefty USD 5.8 billion breakup fee, underscoring the high stakes for all parties involved. Paramount, meanwhile, has threatened to mount a hostile takeover and pursue legal action against WBD, arguing that its executives didn’t give their offer a fair shot. As of now, though, the WBD board remains committed to moving forward with Netflix, a decision that could reshape the entertainment landscape for decades to come.
For Netflix, the acquisition represents the culmination of a long-stated ambition. Back in 2013, Netflix executive Ted Sarandos famously declared, “The goal is to become HBO faster than HBO can become us.” Fast-forward to 2025, and Netflix isn’t just catching up to HBO—it’s buying it outright, along with the legendary Warner Bros. studio. It’s a move that even the most audacious Hollywood scriptwriters might have hesitated to dream up.
Meanwhile, Discovery Global—the new entity created from WBD’s spun-off Global Networks division—will retain the company’s legacy cable and sports businesses, including CNN, TNT Sports, Discovery-branded entertainment channels, European free-to-air outlets, and streaming products such as Discovery+ and Bleacher Report. This structure effectively separates the traditional pay-TV and news assets from the studio and streaming businesses Netflix is acquiring, preserving an independent portfolio for potential future consolidation or sale.
As the entertainment world waits for the next act in this high-stakes drama, all eyes are on regulators and the White House. Will Netflix’s bold play to become Hollywood’s new kingpin go unchallenged, or will political and legal maneuvering derail the deal before the credits roll? One thing’s for sure: the outcome will have ramifications that reach far beyond the boardrooms of Los Gatos and Burbank, shaping the future of what—and how—the world watches for years to come.
With the ink barely dry on the deal and the dust far from settled, Hollywood and Wall Street alike are holding their breath. The next chapter in this saga is sure to be one for the history books.