In a landmark development in the entertainment industry, streaming giant Netflix announced on December 5, 2025, that it will acquire Warner Bros. from Warner Bros. Discovery (WBD). The transaction values Warner Bros. Studios at USD 82.7 billion, including equity worth USD 72 billion. With this grand deal, Netflix is poised to become one of the largest entertainment companies in the world, and not just the leading streaming or over-the-top (OTT) platform. Under the agreement, Netflix will take control of the Warner Bros. film and television companies HBO and HBO Max. Not only that, after the deal is completed, Netflix will be the new owner of iconic franchises of Warner Bros. such as Harry Potter, the DC Universe (DCU) - Superman, Batman, Wonder Woman, as well as Game of Thrones, Friends, The Sopranos, and kids shows like The Looney Tunes, Ben 10, Scooby-Doo, and more. Audience favourites The Conjuring Universe and Mortal Kombat, and classics such as The Wizard of Oz, Casablanca and Citizen Kane will also be transferred to Netflix under the new ownership. Let’s take a look at the details of the deal, as provided by Netflix. Warner Bros Discovery Layoffs: US-Based Entertainment Company To Lay Off Around 1,000 Employees as Part of Cost-Cutting Efforts.

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When Will the Netflix-Warner Bros. Transaction Take Place?

The Netflix and Warner Bros. acquisition will take place once WBD completes the spinoff of its Global Networks division, which will be renamed to Discovery Global. According to Netflix, the separation is expected in Quarter 3 of the year 2026, and the closing is expected 12 to 18 months from December 2025, pending regulatory and shareholder approvals. Stranger Things: Tales From ’85 Announcement: Netflix Unveils Voice Cast; Animated Spin-Off Set Between Seasons 2 and 3 Promises Nostalgia, Monsters and Mystery (Watch Video).

Netflix-Warner Bros. Deal Details

Netflix said in its statement, “Today, Netflix, Inc. (the Company) and Warner Bros. Discovery, Inc. (WBD) announced they have entered into a definitive agreement under which Netflix will acquire Warner Bros., including its film and television studios, HBO Max and HBO. The cash and stock transaction is valued at $27.75 per WBD share (subject to a collar as detailed below), with a total enterprise value of approximately $82.7 billion (equity value of $72.0 billion). The transaction is expected to close after the previously announced separation of WBD’s Global Networks division, Discovery Global, into a new publicly-traded company, which is now expected to be completed in Q3 2026.”

“This acquisition brings together two pioneering entertainment businesses, combining Netflix’s innovation, global reach and best-in-class streaming service with Warner Bros.’ century-long legacy of world-class storytelling. Beloved franchises, shows and movies such as The Big Bang Theory, The Sopranos, Game of Thrones, The Wizard of Oz and the DC Universe will join Netflix’s extensive portfolio including Wednesday, Money Heist, Bridgerton, Adolescence and Extraction, creating an extraordinary entertainment offering for audiences worldwide,” the statement added.

Ted Sarandos on Netflix-Warner Bros. Deal

Netflix executives said the Warner Bros. acquisition was a transformational moment for the company and the entertainment industry. Ted Sarandos, Netflix Co-CEO (Chief Executive Officer), said in a statement, “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.”

Greg Peters on Netflix-Warner Bros. Deal

Greg Peters, Netflix Co-CEO (Chief Executive Officer), spelt out the benefits for subscribers, with more high-quality titles and a stronger content slate. “This acquisition will improve our offering and accelerate our business for decades to come. Warner Bros. has helped define entertainment for more than a century and continues to do so with phenomenal creative executives and production capabilities. With our global reach and proven business model, we can introduce a broader 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 value for shareholders,” Peters said in a statement.

David Zaslav on Netflix-Warner Bros. Acquisition

David Zaslav, Warner Bros. Discovery President and CEO, called the Netflix deal a milestone for the two companies who have defined entertainment for generations. “Today’s announcement combines two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most. For more than a century, Warner Bros. has thrilled audiences, captured the world’s attention, and shaped our culture. By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come, ” said Zaslav.

Advantages of Netflix-Warner Bros. Deal

Netflix listed out five advantages broadly that will benefit viewers and the entertainment landscape after the Warner Bros. takeover:

1. Complementary strengths and assets.

2. More choice and greater value for consumers

3. A stronger entertainment industry

4. More opportunities for the creative community

5. More value for shareholders.

By absorbing Warner Bros., Netflix seeks to significantly expand its studio and inventory of established franchises. Netflix says it expects to realise USD 2-3 billion in cost savings by the third year of acquisition. The company also expects the transaction will be accretive to Generally Accepted Accounting Principles (GAAP) earnings by the second year.

Netflix assured fans of Warner Bros. that it intends to maintain theatrical film operations and will continue big-screen releases even though streaming will remain its core business.

Netflix as a streaming platform has endeared itself to not just audiences worldwide but to mainstream Hollywood after initial opposition from greats like filmmaker Steven Spielberg. With the Warner Bros. deal, Netflix is set to again redefine the dynamics of the movie business in theatres, and on TV and OTT.

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(The above story first appeared on LatestLY on Dec 05, 2025 09:00 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).