Netflix has announced a landmark agreement to acquire Warner Bros., including HBO and HBO Max, in a cash-and-stock deal valued at approximately $82.7 billion in enterprise value. The transaction, which follows Warner Bros. Discovery’s planned spin-off of its global networks division “Discovery Global,” is poised to reshape the streaming and studio landscape by uniting Hollywood’s most storied content library with the world’s largest subscription streaming platform.
Deal Structure and Key Details
Under the definitive agreement, Netflix will acquire Warner Bros.’ film and television studios, HBO and HBO Max, for a total enterprise value of about $82.7 billion, corresponding to an equity value of roughly $72 billion. Warner Bros. Discovery shareholders are set to receive $27.75 per share, split between approximately $23.25 in cash and $4.50 in Netflix stock, subject to a collar mechanism.
The deal is expected to close after WBD completes the spin-off of its Global Networks unit into a separate publicly traded company, currently targeted for the third quarter of 2026, and remains subject to regulatory approvals and customary closing conditions.
What Netflix Gains: HBO, DC, and Iconic Franchises
With this acquisition, Netflix will control Warner Bros.’ legendary film and TV studio, HBO and HBO Max, and a deep catalog that includes DC’s superhero universe, Harry Potter, The Lord of the Rings (WB’s film rights), classic MGM-era titles in the WB library, and prestige series such as Game of Thrones, The Sopranos, The Wire, The Big Bang Theory and Succession.
The deal instantly expands Netflix’s portfolio beyond originals like Stranger Things, Wednesday, Bridgerton and Money Heist to include decades of Warner-owned IP, giving the combined platform unmatched depth across blockbuster films, adult dramas, animation and family content.
Industry Impact and Strategic Rationale
Analysts note that the $82.7 billion enterprise value implies a significant premium over Warner Bros. Discovery’s recent standalone market cap (around $60–61 billion), reflecting the strategic value of combining Netflix’s global streaming scale with Warner’s IP. The acquisition positions Netflix not just as a streamer but as a full-fledged studio powerhouse, competing directly with Disney in both content ownership and distribution.
The companies highlight synergies in global distribution, tech infrastructure and content monetization, with Netflix expected to integrate HBO Max into its broader offering rather than maintain parallel services, though branding and product details will be finalized closer to closing.
What Happens Next for Subscribers and Creators
Until the transaction closes, Netflix and Warner Bros. Discovery will continue to operate independently, with HBO Max and Netflix remaining separate apps and existing licensing deals staying in place. Post-closing, viewers can expect a phased integration, with many Warner and HBO titles gradually folded into Netflix’s interface and potential new co-branded originals leveraging DC, Wizarding World and HBO showrunners.
For talent and creators, the combined entity offers a single, massive global pipeline for premium series, films and franchises, but also raises questions about consolidation, competition for slots, and how Netflix will balance its existing slate with inherited HBO and Warner projects.
A Defining Deal for the Streaming Era
If completed as planned in 2026, Netflix’s $82.7 billion acquisition of Warner Bros. and HBO Max will stand as one of the defining media deals of the streaming era, effectively merging the pioneer of subscription streaming with a century-old Hollywood studio and cable giant. The move signals a future where a handful of global giants control most major franchises and distribution, and where Netflix transitions from disruptor to incumbent at the very center of the entertainment universe.
