Netflix to buy Warner Bros. in US$82.7bn deal after Discovery split

One of Hollywood’s most iconic film and television studios is set to be absorbed by the world’s largest streaming platform, after Netflix struck an agreement to acquire Warner Bros. in a US$82.7 billion deal.

The move brings Warner Bros. century-old studio operation - home to Harry Potter, Game of Thrones, The Sopranos, The Big Bang Theory, the DC Universe and The Wizard of Oz - under Netflix’s global streaming empire in one of the most significant consolidation moves in recent years.

It also throws the future positioning of HBO and HBO Max into question, following a turbulent 18 months in which Warner Bros. Discovery folded HBO Max into a broader Max strategy, pulled back on aggressive global expansion and scaled content investment amid cost-cutting pressure.

Under the agreement, Netflix will acquire Warner Bros.’ film and television studios, along with HBO and HBO Max, after Warner Bros. Discovery completes the previously announced separation of its Global Networks business in Q3 2026. The transaction is expected to close within 12 to 18 months.

The deal marks the latest escalation in the streaming sector’s consolidation cycle, following Amazon’s $8.5 billion acquisition of MGM in 2022, a move that gave Amazon instant access to the James Bond franchise and more than 4,000 film titles.

Netflix moved quickly to reassure subscribers that no immediate changes are coming to its service or Warner Bros.’ streaming operations while regulatory and shareholder approvals are sought.

“What’s changing? Nothing is changing today,” Netflix told customers in a post-announcement email. “Both streaming services will continue to operate separately. We have more steps to complete before the deal is closed, including regulatory and shareholder approvals… In the meantime, we hope you’ll continue to enjoy watching as much as you want, whenever you want – all on your current membership plan.”

Franchise Power

For Netflix, the acquisition delivers instant scale in filmed entertainment production, library depth and premium franchise power at a time when subscriber growth across global markets has slowed and content costs remain under sustained pressure.

“Our mission has always been to entertain the world,” Ted Sarandos, co-CEO of Netflix, said. “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 like Stranger Things, KPop Demon Hunters and Squid Game, we'll be able to do that even better. Together, we can give audiences more of what they love and help define the next century of storytelling.”

Warner Bros. Discovery CEO David Zaslav framed the transaction as a long-term play on creative scale and global reach.

“Today’s announcement combines two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most,” Zaslav said. “For more than a century, Warner Bros. has thrilled audiences, captured the world’s attention, and shaped our culture. By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come.”

Netflix said it intends to maintain Warner Bros. existing studio operations, including theatrical film releases, while using its platform scale to expand global distribution and production output.

Warner Bros. Discovery’s Global Networks business, housing CNN, TNT Sports in the US, Discovery’s international free-to-air channels, Discovery+ and Bleacher Report, will be spun out into a separate listed company called Discovery Global, ahead of the transaction’s completion.

The deal was unanimously approved by both boards and remains subject to regulatory and shareholder approvals.