Netflix Is Buying Warner Bros. in an $83B Deal. Here’s What It Means for You
Netflix took another step toward becoming one of the most dominant forces in the global entertainment industry on Friday by announcing its acquisition of Warner Bros., HBO and its HBO Max streaming business. The $82.7 billion deal will see the entertainment giant acquire the studio and streaming arm of Warner Bros. Discovery, following the announcement made this year by the latter company of its split into two. WBD is expected to spin off its Discovery business in the third quarter of 2026.
By acquiring Warner Bros., HBO and HBO Max, Netflix will not only strengthen its own catalog of shows and movies – which already includes big hits such as Stranger Things, Wednesday and Squid Game, along with Warner Bros. properties. Harry Potter, Friends and Batman – but will also see it host HBO shows including Game of Thrones and Succession.
“Our mission has always been to entertain the world,” Netflix co-CEO Ted Sarandos said in a statement. He promised the deal would bring audiences “more of what they love and help define the next century of storytelling.”
Greg Peters, co-CEO of Netflix, praised WBD’s longevity and management team, adding: “With our global reach and proven business model, we can introduce a wider audience to the worlds they create – giving our members more options, attracting more fans to our best-in-class streaming service, strengthening the entire entertainment industry and creating more shareholder value.” »
The big question for most Netflix subscribers will likely be how the acquisition might affect monthly subscription costs. Netflix is our top pick of the many streaming services available to you, but one of the few downsides we note in our review is that the premium plans are already at the more expensive end of the spectrum.
It’s too early to tell what the pricing implications might look like, but streaming services are getting more expensive and this acquisition is unlikely to reverse that trend. While it’s unclear whether Netflix plans to merge the two streaming apps into a single offering, the company said the deal will allow it to “optimize its plans for consumers, improving viewing options and expanding access to content.”
The deal, which values Warner Bros. Discovery at approximately $72 billion after debt, was unanimously approved by the boards of directors of both companies. This should allow Netflix to increase its production capacity for original titles and invest in more original content. Netflix said it plans to keep Warner Bros. ongoing operations, and still expects theatrical releases of films (like The Batman Part II) to proceed as usual.
What’s next if the transaction clears regulatory hurdles? “If this deal gains regulatory approval, Netflix will now consolidate itself as the Goliath of streaming services with the combined weight of HBO Max and content studios behind it all,” said Mike Proulx, Forrester vice president and research director. “This deal changes the calculus of the streaming wars, representing a seismic shift in the entertainment industry.”
