Marrakech – “Harry Potter,” “Game of Thrones,” HBO Max, and the DC Universe are now set to become Netflix properties. The streaming giant announced Friday its agreement to acquire Warner Bros Discovery’s film and television studios, including HBO and HBO Max, in a massive $82.7 billion enterprise value deal.
Netflix outbid media conglomerates Paramount and Comcast in an intense bidding war that began after Warner Bros Discovery announced in June its plans to split into two companies by mid-2026. The cash-and-stock transaction values Warner Bros Discovery at $27.75 per share, with an equity value of $72 billion.
The acquisition brings together Netflix’s global streaming platform with Warner Bros’ century-long entertainment legacy. Beloved franchises, including “The Big Bang Theory,” “The Sopranos,” “Game of Thrones,” “The Wizard of Oz,” and the entire DC Universe, will join Netflix’s extensive portfolio featuring “Wednesday,” “Squid Game,” “Bridgerton,” and “Stranger Things.”
Ted Sarandos, Netflix co-CEO, described the deal as essential for the company’s mission to entertain the world. “By combining Warner Bros’ incredible library of shows and movies – from timeless classics like ‘Casablanca’ and ‘Citizen Kane’ to modern favorites like ‘Harry Potter’ and ‘Friends’ – with our culture-defining titles, we’ll be able to do that even better,” Sarandos stated.
Greg Peters, Netflix’s other co-CEO, stressed the acquisition’s strategic importance. “Warner Bros has helped define entertainment for more than a century and continues to do so with phenomenal creative executives and production capabilities,” Peters explained.
The deal aims to give Netflix members more viewing options while attracting additional subscribers to strengthen the entertainment industry.
David Zaslav, President and CEO of Warner Bros Discovery, characterized the announcement as uniting “two of the greatest storytelling companies in the world.” He expressed confidence that the combination will ensure that audiences continue to enjoy compelling stories for generations.
The transaction includes Warner Bros’ film and television studios, HBO Max streaming service, HBO premium cable network, and Warner Bros Games division.
Netflix has committed to maintaining Warner Bros’ current operations, including theatrical releases for approximately 15 films annually. The streaming service will operate HBO and HBO Max as standalone brands initially while determining long-term integration plans.
Netflix expects to realize $2-3 billion in annual cost savings by the third year through eliminating operational overlaps, particularly in support and technology functions. The company anticipates the transaction will be accretive to earnings per share by year two and projects increased member retention and engagement through expanded content offerings.
‘An anti-monopoly nightmare’
The deal has thrust itself into the crosshairs of competition regulators. Democratic Senator Elizabeth Warren slammed the transaction as “an anti-monopoly nightmare” that could create “one massive media giant with control of close to half of the streaming market.”
She warned of potential consequences, including higher prices, fewer viewing choices, and worker displacement.
Republican Senator Mike Lee expressed similar concerns, describing the potential transaction as raising “serious competition questions – perhaps more so than any transaction I’ve seen in about a decade.” He warned the deal could end “the Golden Age of streaming for content creators and consumers.”
Industry organizations have mobilized opposition to the acquisition. The Writers Guild of America issued a joint statement demanding the merger be blocked, arguing it would “eliminate jobs, push down wages, worsen conditions for all entertainment workers, raise prices for consumers, and reduce the volume and diversity of content for all viewers.”
The Directors Guild of America announced plans to meet with Netflix to discuss concerns about maintaining industry competition and protecting creative rights. Cinema United’s CEO Michael O’Leary warned of “an unprecedented threat” to global cinema business, predicting negative impacts on theaters worldwide.
The transaction requires Warner Bros Discovery shareholder approval and regulatory clearance before closing. The deal is structured to complete after Warner Bros Discovery finalizes its previously announced separation into two companies in Q3 2026.
The Global Networks division, including CNN, TNT Sports, Discovery channels, and other cable networks, will become Discovery Global under separate leadership.
Netflix has never attempted an acquisition of this magnitude. Spencer Neumann, Netflix’s chief financial officer, indicated the deal will help the company “attract and retain more subscribers” in an increasingly competitive entertainment landscape. The streaming service currently operates in over 190 countries with more than 300 million paid subscribers.
If regulatory approval fails, Netflix must pay Warner Bros Discovery a $5.8 billion breakup fee. Conversely, if Warner Bros Discovery terminates the agreement for another bidder, it owes Netflix $2.8 billion.
The transaction timeline extends 12-18 months from announcement, pending all required approvals and closing conditions. Netflix has assured current subscribers that nothing changes immediately, with both streaming services continuing separate operations until deal completion.
