Netflix to acquire Warner Bros. in a disruptive deal valued at $82.7B

Netflix has announced one of the most significant acquisitions in entertainment history, revealing on Friday that it will acquire Warner Bros. for $82.7 billion.

The agreement covers both HBO Max and the HBO studio, making this merger one of Hollywood’s largest to date. With this move, Netflix is not only strengthening its leading position in the streaming market but also expanding its content catalogue with major franchises like DC Comics, “Game of Thrones,” and “Harry Potter.”

As of January, Netflix had more than 300 million paying subscribers, while HBO Max had 128 million subscribers. The size of Netflix’s offer is also noteworthy — the company is investing $72 billion, surpassing Warner Bros.’ entire market valuation of $60 billion.

Despite the scale of the agreement, the merger may face antitrust scrutiny. In November, Senators Elizabeth Warren, Bernie Sanders, and Richard Blumenthal raised concerns about the potential sale. They sent a letter to the Justice Department Antitrust Division stating that any such deal would be viewed “under a cloud of political favoritism and corruption.”

Industry voices have also joined the discussion. According to Variety, an anonymous group sent a letter to Congress urging lawmakers to oppose Netflix’s bid.

Warner Bros. Discovery put itself up for sale in October after struggling with debt and slow streaming growth. Several companies expressed interest, with Paramount initially seen as the leading contender.

The acquisition is projected to close in the third quarter of 2026, following Warner Bros. Discovery’s plan to separate from Discovery Global, which includes its portfolio of pay TV networks such as TNT and CNN. The companies expect the transaction — a combination of cash and stock — to be finalised within 12 to 18 months.