Netflix to Acquire Warner Bros Discovery in $83 Billion Entertainment Mega-Merger

Netflix has announced a groundbreaking acquisition of Warner Bros Discovery (WBD) valued at nearly $83 billion, marking the largest consolidation in the entertainment industry since Disney's 2019 purchase of Fox. This deal, which includes WBD’s vast content library and the HBO Max streaming service, brings together two major players to create a dominant force in global entertainment. Netflix’s offer of $27.75 per share, amounting to approximately $72 billion excluding debt, surpassed competing bids from Comcast and Paramount Skydance.

The agreement, announced on December 6, 2025, awaits regulatory and shareholder approvals and is expected to close within 12 to 18 months. Netflix co-CEO Ted Sarandos emphasized that the merger will enrich the company’s entertainment offerings by combining classic and popular franchises such as Harry Potter, DC superheroes, Friends, and Game of Thrones with Netflix’s original content. Warner Bros Discovery CEO David Zaslav hailed the union as a way to enhance storytelling opportunities for audiences worldwide.

Financially, Netflix anticipates attracting more subscribers and achieving annual savings of $2 to $3 billion within three years of closing the deal. The company plans to maintain Warner Bros’ existing operational model, including theatrical film releases, while expanding studio production capabilities in the United States. However, concerns have been voiced from within the industry and the White House regarding Netflix’s rising dominance, warning potential risks to cinema culture and market competition.

Notably, the acquisition excludes Warner Bros Discovery’s television channels like CNN, which will be housed within a separate publicly traded entity prior to the deal. Additionally, the deal stipulates a $5.8 billion penalty if it fails to close. Following the announcement, Netflix’s stock experienced a near 3% decline, reflecting some investor apprehension over regulatory scrutiny and integration challenges.

Industry voices such as director James Cameron have criticized the merger's potential impact on the film sector, echoing fears that prioritizing streaming could undermine traditional cinema. Regulatory hurdles in the US and Europe are expected to be rigorous due to antitrust concerns. Nonetheless, Netflix executives have expressed confidence in securing approval, asserting the acquisition aligns with their long-term strategy to expand and diversify entertainment content for a global audience.