There were many reports and rumours going about that Netflix was the leading frontrunner to acquire Warner Bros., and clearly they were spot on.
A press release has been issued wherein Netflix reveals that it has entered into an agreement to acquire Warner Bros. film and television studios, including HBO and HBO Max, for an absolutely staggering $82.7 billion.
This deal is specifically for those parts of the wider Warner Bros. business, as the transaction will only close after Warner Bros. and Discovery Global split into separate entities in Q3 2026, meaning you shouldn't expect to see Discovery products and IP as part of Netflix's immense treasure trove of products.
The release states that the deal has been locked in at $27.75 per WBD share, and that this makes up for a total valuation that even makes Microsoft's acquisition of Activision Blizzard look somewhat small (with that registered at $68.7 billion). The next big problem for Netflix will be getting this acquisition approved by trade bodies around the world, as there will be concerns that such a deal will lead to monopolisation in the entertainment sector.
Netflix co-CEO Ted Sarandos has stated: "Our mission has always been to entertain the world. 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."
It's said that Netflix expects to see Warner Bros. continue to maintain "current operations and build on its strengths, including theatrical releases for films." That being said, the wording does suggest that Netflix will soon be enhanced with HBO Max content, something it intends to offer by optimising "its plans for consumers, enhancing viewing options and expanding access to content." Beyond this, expect an expanded production capacity for Netflix particularly in the US, and to "attract and retain more members, drive more engagement and generate incremental revenue and operating income."
The transaction was said to have been approved by the boards of both companies and is expected to close in around 12-18 months. As for how this will affect the ever-increasing cost of a Netflix subscription is a nightmare that we must all now suffer...