By Brooks Barnes, Lauren Hirsch & Nicole Sperling | December 5, 2025
New York, NY — Netflix announced on Friday that it will acquire Warner Bros. Discovery’s studio and streaming operations in a landmark $82.7 billion cash-and-stock deal, sending shock waves through Hollywood and the global media industry.
The acquisition includes Warner Bros.’ television and film studios, HBO Max, and related streaming assets. Netflix and Warner Bros. Discovery expect the transaction to close after Warner’s planned separation of its cable networks, including CNN, TNT, and Discovery, into a standalone public company in the third quarter of 2026.
A Streaming Giant Grows Even Larger
Netflix, already the world’s largest paid streaming service with over 300 million subscribers, will gain substantial new content and franchise holdings through Warner’s properties. The merger is expected to enhance Netflix’s bargaining power with theater operators and industry unions, potentially reshaping competition in Hollywood.
This acquisition further underscores the ongoing influence of tech companies in Hollywood, following Amazon’s $8.5 billion purchase of Metro-Goldwyn-Mayer in 2022, which added franchises like James Bond and Rocky to its portfolio.
Netflix co-CEO Ted Sarandos said in a statement:
“Together, we can give audiences more of what they love and help define the next century of storytelling.”
Competitive Bidding and Strategic Moves
The deal came after a bidding war involving Netflix, Comcast, and Paramount. Netflix reportedly offered primarily cash, emerging as the winning bidder. Analysts say the acquisition could trigger additional consolidation among smaller studios struggling to compete in a streaming-dominated market.
The merger positions Netflix as a true Hollywood colossus, combining deep content libraries, global reach, and robust production capabilities under one roof.
