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Netflix has revealed plans to buy Warner Bros. in a massive $82.7 billion deal, positioning the streaming giant as a major force in traditional Hollywood production. The acquisition, which carries an equity value of $72 billion, is set to proceed following Warner Bros.’ separation from Discovery, now slated for the third quarter of 2026. This move will bring under Netflix’s umbrella the renowned Warner studio, the premium network HBO, the HBO Max platform, and a treasure trove of intellectual property such as the Harry Potter series, Game of Thrones, and the DC Comics universe.
Ted Sarandos, Netflix’s co-CEO, highlighted the strategic fit in a statement, noting that blending Warner Bros.’ storied catalog, which spans icons like Casablanca and Citizen Kane alongside contemporary hits such as Harry Potter and Friends, with Netflix originals including Stranger Things, KPop Demon Hunters, and Squid Game, will amplify the company’s global entertainment reach.
Reports emerged just a day ago indicating Netflix had emerged victorious in a competitive auction for Warner Bros.’ studio and streaming properties, with the agreement solidifying at a rapid pace. The package encompasses the film production arm, HBO, DC Comics, and Warner Bros. Games. Netflix emphasized in its disclosure that it intends to preserve the status quo initially at Warner Bros., viewing HBO and HBO Max as valuable additions to its ecosystem and committing to ongoing studio functions, such as cinema releases for new movies.
To secure the transaction, Netflix agreed to a substantial $5 billion penalty should antitrust authorities derail it. The offer outmaneuvered proposals from Comcast and Paramount, the latter still integrating its recent union with Skydance, while Amazon and Apple had shown preliminary curiosity. Warner Bros. Discovery had signaled its willingness for a sale back in October, well after unveiling intentions to divide its operations into a studio-streaming entity and a separate cable division. Paramount’s initial offers were turned down, and it had eyed acquiring the full company, but Netflix’s focus remains on the entertainment production side, excluding linear TV and sports holdings like CNN, TNT Sports, and the Discovery networks.
Despite the excitement, the merger faces significant scrutiny from regulators. Sources suggest the Department of Justice is poised to resist, and a high-level figure told CNBC that the incoming Trump administration, which shares ties with the overlooked Paramount, regards the combination with considerable doubt. Senator Elizabeth Warren has labeled it a potential catastrophe for competition in the industry.
Should the acquisition succeed, Netflix must navigate an unfamiliar landscape, managing one of the film industry’s most established players and its cinema distribution model, areas the company has traditionally avoided in favor of direct-to-streamer releases.
Update December 5th: This article incorporates fresh details on the Trump administration’s perspective regarding the proposed merger.
