Netflix said on December 5, 2025, that it agreed to acquire Warner Bros. Discovery’s film and television studio and streaming operations in a cash and stock transaction valuing the business at $82.7 billion including debt, with an equity value of $72.0 billion.
The offer values Warner Bros. Discovery at $27.75 per share and was approved by both companies’ boards, according to company statements and reporting by major outlets. The companies expect closing in 12 to 18 months, subject to regulatory approvals and the separation of certain cable assets.
The combination brings together Netflix’s global streaming scale and a 102-year-old studio with a deep catalog. Netflix reported more than 300 million paid subscribers across over 190 countries.
Warner Bros.’ portfolio includes HBO, the HBO Max streaming platform, DC characters, and film franchises such as “Harry Potter.” Company leaders said the merged catalog is intended to remain widely available during the transition period while integration planning proceeds.
What the deal includes
The agreement covers the Warner Bros. studio, HBO and HBO Max, as well as premium series and film libraries including “Game of Thrones,” DC’s Batman and Superman, and a wide range of classic titles.
Company materials indicate Netflix plans to keep Warner Bros.’ production operations in place while evaluating future distribution strategies.
Linear cable networks are excluded. Warner Bros. Discovery plans to separate its Global Networks unit, including CNN, TNT and TBS, into a distinct entity before the Netflix transaction closes. Executives said the carve-out is designed to simplify regulatory review and align each business with comparable peers.
Price, structure and financing
Under the terms described by the companies, Warner Bros. Discovery shareholders would receive cash and Netflix stock valued at $27.75 per share, implying $72.0 billion for equity and $82.7 billion in enterprise value when debt is included.
The deal includes reciprocal termination fees and a collar on the stock consideration. Management outlined expected annual cost savings of $2 billion to $3 billion by year three, largely from technology, marketing and overhead.
To fund the cash portion, Netflix obtained a $59 billion unsecured bridge loan from a bank group. The company said it expects to refinance the bridge in the bond market over time. Market observers noted that Warner Bros. Discovery’s market capitalization stood near $60 billion as of Thursday’s close, which highlights the premium implied by the combined cash and stock consideration for the studio and streaming assets.
How the bid came together
Warner Bros. Discovery began a sale process in the fall amid high leverage and slower streaming growth. Suitors included Paramount Skydance and Comcast. People familiar with the process said Netflix’s proposal ultimately prevailed after a competitive round of offers.
The company emphasized synergies in technology, global distribution and a combined content slate that spans prestige television, tentpole films and animated franchises.
Leadership changes are expected. According to people briefed on the matter, David Zaslav would not remain with the combined company if the deal closes. During the interim period, Warner Bros.’ existing leadership is expected to continue operating the studio, HBO and HBO Max while the carve-out of cable networks proceeds.
Regulatory outlook and timeline
The merger will be reviewed by the Department of Justice and other regulators. Lawmakers have already signaled scrutiny. In late November, Senators Elizabeth Warren, Richard Blumenthal and Bernie Sanders urged the DOJ’s Antitrust Division to review any Warner Bros. transaction with attention to potential favoritism or conflicts. In a separate letter, Representative Darrell Issa cautioned that combining Netflix with HBO Max could create a company with more than 30 percent share of the streaming market, which he described as presumptively problematic under antitrust law.
Industry groups and producers also raised concerns. An anonymous coalition of “concerned feature film producers” asked Congress to support the highest level of antitrust scrutiny, citing possible effects on competition and theatrical windows.
Company executives said Netflix would honor Warner’s existing theatrical commitments and maintain Warner Bros.’ current operations during the review period, points closely watched by filmmakers and exhibitors.
If approvals are obtained, the companies expect closing after Warner Bros. Discovery completes the separation of its cable networks, a step currently targeted within the transaction’s 12 to 18 month window. Until then, both sides are operating independently, and their existing distribution agreements remain in force.
