Netflix announced earlier this morning that it struck a deal to acquire Warner Bros. for $82.7 billion. After months of courting potential suitors, Netflix came out on top against the likes of Comcast and Paramount, the latter of which got rejected 3 times. This news arrives after it was reported that the streaming company won the bidding war—less than 12 hours ago—and the final deal came together rather quickly.
Back in October, Warner Bros. Discovery announced it was accepting bids for an acquisition, which was after the company planned to split into two: the studio and streaming on one side, and cable on the other side. The deal only covers the studio aspects, as CNN and Discovery channels are considered cable and will remain with Discovery. This massive acquisition makes Netflix the sole owner of all things WB, including HBO, HBO Max, DC Comics, DC Studios, Harry Potter, Game of Thrones, Cartoon Network, Warner Bros. Games, and WB’s extensive library of shows and movies.
The sale is expected to conclude sometime in Q3 of 2026, as that’s when WB is scheduled to split from Discovery. However, the deal needs to be approved by regulators such as the FCC and the DOJ, like any other major acquisition in business. Fortunately, the Netflix deal does include a $5 billion breakup fee in case the sale goes south.
So what does Netflix’s purchase of WB mean for the future of Hollywood and streaming? It’s difficult to say at the moment. During the shareholders’ call, Netflix states that HBO Max and Netflix will remain separate apps, with more WB content coming to Netflix, for the time being.
However, Netflix co-CEO Ted Sarandos expects to maintain WB’s current operations, which include its current policy of theatrical releases for its films. I expect massive changes and layoffs sometime in 2027, well after the deal is finalized. I would be surprised if this deal goes through and Netflix doesn’t introduce a massive price hike for its current subscribers—but time will tell.
