Netflix has taken a massive leap in the entertainment world with its landmark acquisition of Warner Bros. Discovery Inc., a move that makes the world’s largest streaming platform the new owner of HBO and its celebrated library—including timeless hits like The Sopranos and The White Lotus. This merger marks one of the most significant media combinations in Hollywood history.
Announced on Friday, the deal will see Warner Bros. shareholders receive $27.75 per share in a mix of cash and Netflix stock. The total equity value is estimated at $72 billion, while the enterprise value reaches approximately $82.7 billion. Before the sale officially closes, Warner Bros. will proceed with its planned spinoff of major cable networks such as CNN, TBS, and TNT.
This acquisition signals a dramatic strategic shift for Netflix, which has famously built its empire without owning a major studio or a legacy content library. The company grew into Hollywood’s most valuable entertainment force by licensing popular titles before becoming a powerhouse in original programming.
What the Netflix–Warner Bros. Deal Covers
By acquiring Warner Bros., Netflix becomes the owner of HBO, gaining access to one of the most prestigious catalogs in television history. This includes critically acclaimed series such as The Sopranos, The White Lotus, and a vast selection of premium dramas, comedies, and documentaries.
Warner Bros.’ assets extend far beyond HBO:
- The company’s massive Burbank studios
- An extensive archive of beloved film and TV franchises, including Harry Potter and Friends
- Decades of cultural influence across global entertainment
Warner Bros. had initiated the sale process in October following interest from multiple buyers. Apart from Netflix, the studio drew attention from Paramount Skydance Corp. and Comcast Corp. The competition intensified, with Paramount accusing Warner Bros. of running a biased bidding process favoring Netflix.
Why Warner Bros. Became Vulnerable
The traditional TV industry is undergoing a steep decline as audiences transition to digital streaming—an arena Netflix continues to dominate. In its latest quarterly results, Warner Bros.’ cable network division reported a 23% drop in revenue, driven by subscriber losses and advertisers shifting budgets away from linear television.
Meanwhile, Netflix, founded nearly 30 years ago as a DVD-by-mail rental startup, ended 2024 with $39 billion in revenue. Remarkably, Warner Bros., established in the 1920s, generated a similar revenue figure in the same period—underscoring the scale of this merger between two entertainment titans.
How This Impacts the Streaming Wars
With Warner Bros.’ iconic content under its banner, Netflix gains a significant advantage over major competitors like Walt Disney Co. and Paramount Skydance. The acquisition enhances Netflix’s already dominant position and strengthens its long-term programming power.
However, the deal is expected to face intense antitrust scrutiny in both the U.S. and Europe. Some concerns have already surfaced.
U.S. Representative Darrell Issa, a Republican from California, raised objections with federal regulators, arguing that such a merger could harm consumers. Netflix has countered these concerns by noting that one of its biggest rivals is Alphabet Inc.’s YouTube, not just traditional studios or streamers.
Reaction Within Hollywood
News of Netflix’s interest in Warner Bros. sent ripples through the film and TV industry. Known for its reluctance to prioritize theatrical releases, Netflix typically restricts cinema runs for its original films. The studio’s takeover of Warner Bros.—a company deeply rooted in theatrical tradition—has left Hollywood curious about how distribution strategies may evolve under Netflix’s leadership.
The merger represents a defining moment for global entertainment, merging the world’s most influential streaming platform with one of Hollywood’s oldest, most prestigious studios.