Netflix is moving to buy Warner Bros. Discovery in a $82.7 billion (equity value of $72B) deal that could reshape Hollywood and unite one of the world’s largest streaming platforms with a studio that has shaped film and television for decades. The proposed acquisition would give Netflix control of major franchises such as Batman, Harry Potter, and Game of Thrones, as well as the studio that led US box office attendance this year.
Analysts say the deal comes at a fragile moment for the entertainment business. With theaters struggling and streaming competition intensifying, Netflix would gain influence across both sectors.
Regulatory hurdles loom over the proposed merger
The deal must clear significant regulatory review in the United States and in other global markets. Lawmakers have already expressed concern about further consolidation in the entertainment industry. This “should send alarm to antitrust enforcers around the world,” Sen. Mike Lee wrote on X.
Netflix announced its plan shortly after Warner Bros. Discovery confirmed it would split into two publicly traded companies in 2026. Once the division occurs next summer, Netflix intends to acquire the Warner segment. The remaining company, Discovery Global, will house CNN and other cable channels.
Netflix overtakes Paramount in a surprise bidding shift
Paramount was widely seen as the leading contender to acquire WBD for several weeks. Its executives pushed to buy the full portfolio, including cable networks, and expressed confidence in their standing. But Netflix surged ahead earlier this week by submitting two aggressive bids, according to sources familiar with the negotiations.
$NFLX $WBD $DIS $AMZN $AAPL
Netflix buying Warner Bros. is the moment the streaming war quietly ended. Not with a price hike. Not with a hit show. With a library acquisition so massive that everyone else just became a licensee of culture while Netflix became the owner.
Disney+… pic.twitter.com/8NwrvjHWAe
— Mukund Mohan (@mukund) December 5, 2025
The shift upended expectations and set the stage for the industry’s most consequential acquisition battle in years.
Netflix leaders defend the strategy behind the purchase
Netflix co-CEO Ted Sarandos addressed the surprise directly. “Over the years we have been known to be builders, not buyers,” he said. “But this is a rare opportunity, and it’s going to help us achieve our mission to entertain the world and to bring people together through great stories.”
Sarandos also pointed to the failures of past media mergers, saying many collapsed because buyers lacked a deep understanding of entertainment or pursued deals from a position of weakness. Netflix, he argued, is growing, adding subscribers, and strengthening engagement.
The company agreed to match Paramount’s steep breakup fee, committing to pay WBD billions if the transaction falls apart. Analysts say the fee reflects the unpredictable global regulatory climate.
Industry reaction reflects both concern and inevitability
Netflix executives argue that Warner Bros.’ assets complement their own and will expand opportunities for creators. Co-CEO Greg Peters said Warner Bros. “has helped define entertainment for more than a century,” adding that Netflix’s global reach could introduce its stories to wider audiences.
But pushback is building. Cinema United, a trade group for theater owners, warned the deal “poses an unprecedented threat to the global exhibition business,” citing Netflix’s limited commitment to theatrical releases. Netflix said it plans to maintain Warner Bros.’ current operations, including film distribution.
A Bank of America report captured the magnitude of the proposal: “If Netflix acquires Warner Bros., the streaming wars are effectively over. Netflix would become the undisputed global powerhouse of Hollywood beyond even its currently lofty position.”
