Netflix seals $82.7bn deal to acquire Warner Bros and HBO
December 5, 2025 12.28 Europe/London By Julian Clover


Netflix has struck a definitive agreement to acquire Warner Bros, including its film and TV studios, HBO and the HBO Max streaming service, in a cash-and-stock deal that values the business at an enterprise value of around $82.7 billion (€71.0 billion).

The deal will close after WBD completes the previously announced separation of its Global Networks division into a new, publicly traded company, Discovery Global, now expected in Q3 2026.

Under the terms of the transaction, Warner Bros. Discovery (WBD) shareholders will receive $23.25 in cash and $4.50 (€3.9) in Netflix stock for each WBD share, valuing the company at $27.75 (€23.8) per share and implying total equity value of approximately $72.0 billion (€61.8 billion).

Netflix and WBD expect the acquisition to close 12–18 months after the spin-off, subject to regulatory and shareholder approvals.

The acquisition hands Netflix control of one of Hollywood’s most familiar studios and its portfolio of premium brands and franchises. Warner Bros properties including The Big Bang Theory, Game of Thrones, The Sopranos, the DC Universe, Harry Potter and Friends will ultimately sit alongside Netflix originals such as Stranger Things, Squid Game, Money Heist and Bridgerton under a single corporate roof. Netflix said it intends to maintain Warner Bros’ current operations, including theatrical releases, and use its global streaming footprint to extend the reach of the studio’s IP.

HBO and HBO Max are positioned as a “complementary” premium offering inside Netflix’s future portfolio, rather than as a standalone rival service. While branding and packaging details have yet to be confirmed, Netflix is signalling a multi-tier approach that folds HBO’s series into broader streaming plans, with more scope to bundle libraries and windowing across its global service. The company is targeting $2–3 billion (€2.1–2.6 billion) in annual cost savings by year three and says the transaction should be accretive to earnings per share by the second year after closing.

Discovery Global, the networks spin-off that sits outside the Netflix deal, will retain WBD’s linear and sports businesses including CNN, TNT Sports in the United States, Discovery-branded entertainment channels, European free-to-air outlets and streaming products such as Discovery+ and Bleacher Report. That structure effectively separates legacy cable and global channels from the studio and streaming assets Netflix is buying, and preserves an independent pay-TV and news portfolio for future consolidation moves.

The agreement caps a months-long bidding war in which Paramount Skydance and Comcast also tabled offers. Paramount had been pursuing a full takeover of WBD, including CNN and the cable networks, while Netflix and Comcast focused on the studio and streaming operations. Reports over recent weeks suggested Netflix’s mostly cash proposal had moved into pole position, with WBD’s board ultimately backing the Netflix structure over rival bids. Paramount has already complained publicly about a “tilted” auction process and could still explore hostile options, though control of Warner Bros is now contractually committed to Netflix unless regulators intervene.

The deal will now face intense scrutiny from competition authorities in the United States, Europe and other key markets, given the combination of Netflix’s global streaming scale with HBO’s premium subscription base and the Warner Bros studio. Lawmakers and industry groups have already flagged concerns about market concentration during the earlier bidding phase, and Netflix has prepared for a lengthy review process.