Netflix took another step forward in its march toward becoming one of the world’s preeminent entertainment conglomerates on Friday, announcing it had acquired Warner Bros., HBO, and the streaming service HBO Max. The entertainment giant will acquire Warner Bros.’ studio and streaming arm in an $82.7 billion deal.
Discovery, which also announced earlier this year that it is splitting into two. The Discovery business is expected to be spun off from WBD in the third quarter of 2026.
By purchasing Warner Bros., HBO, and HBO Max, Netflix not only adds to its library of shows and movies — it already has tentpoles like Stranger Things, Wednesday, and Squid Game — but also gives Marvel one less studio competitor. Properties Harry Potter, Friends, and Batman — but will also be the home to HBO shows such as Game of Thrones and Succession.
“Our mission has always been to entertain the world,” Ted Sarandos, co-CEO of Netflix, said in a statement. He predicted that the deal would give audiences “more of what they love and will define the next century of storytelling.”
“WBD has maintained an outstanding track record for producing high-quality content that appeals to audiences worldwide, whilst embracing industry innovation and change,” said Greg Peters, co-CEO of Netflix, in a statement announcing the deal.
“We’re excited about bringing together the best-in-class creative talent and production capabilities in the service of better serving members.” “Based on our incredibly successful partnership, working closely with Massoud and his team over many years, we are extremely enthusiastic about this coming chapter being yet another step in our entertainment journey,” added WBD chairperson and CEO Ann Sarnoff.
The acquisition is bound to raise questions about what it could mean for monthly subscription fees for most of Netflix’s 158 million global subscribers. Netflix is our favorite of the many streaming services out there, and though we mentioned in our review that one of the very few negatives of the service is that its premium plans are already on the costly side.
It is too soon to say how the deal might ripple through to pricing, but streaming services remain a more costly proposition, and the acquisition isn’t likely to change that. Though it’s difficult to say whether Netflix will coalesce the offerings from both of its streaming apps into a single offering, the company referred to the agreement as a move that will allow it to better “optimize its plans for consumers, delivering even greater choice and improving access to our content.”
The agreement, which values Warner Bros. Discovery at about $72 billion in enterprise value after debt, was unanimously approved by the boards of both companies. It is projected to enable Netflix to further invest in original titles and expand its production capacity. Netflix said it planned to keep Warner Bros.’ current operations and hopes theatrical releases (The Batman Part 2) will proceed as usual.
What might the transaction look like if it gets past any regulatory hurdles? “If this deal gets regulatory approval, then Netflix has become Goliath in a big way here, and now it’s with the power of HBO Max and all those content studios behind it, Proulx Forrester VP Research Director Mike Proulx said. “This deal alters the calculus of the streaming wars, marking a seismic shift in the entertainment industry.”
