Netflix has announced a historic agreement to acquire Warner Bros.’ film and television studios, along with its streaming operations—including HBO and HBO Max—in a deal valued at approximately $82.7 billion. The transaction includes an equity value of roughly $72 billion and marks one of the largest entertainment mergers in Hollywood history.
Under the terms of the agreement, Warner Bros. Discovery shareholders will receive $23.25 in cash and $4.50 in Netflix stock per share. The deal depends on the planned separation of Warner Bros.’ Global Networks division, which includes cable brands such as CNN and TNT. That spinoff is expected to be completed in the third quarter of 2026, clearing the way for final regulatory reviews of the acquisition. Both companies expect the merger to close within 12 to 18 months.
If approved, Netflix will gain control of Warner Bros.’ vast film and television library, including decades of cinematic classics, major franchises, and HBO’s award-winning slate of prestige series. Netflix leaders say they plan to continue theatrical releases for Warner Bros. films and maintain the studio’s existing operations while integrating its content strategy into Netflix's global streaming platform.
Netflix’s leaders described the acquisition as an opportunity to combine the company’s streaming reach with Warner Bros.’ legacy of storytelling. The move is also expected to substantially boost Netflix’s in-house production capabilities, reduce reliance on external studios, and position the company as an even more dominant force in the increasingly competitive streaming landscape. Analysts note that Netflix will become not just the world’s largest streamer, but one of its most powerful entertainment studios.
The acquisition is projected to deliver between $2 billion and $3 billion in annual cost savings within three years of closing. These savings could be used to fund new content production, streamline operations, or offset the significant financing behind the deal.
However, the merger faces significant regulatory challenges. Antitrust experts are already raising concerns about the impact of consolidating two major powerhouses of film, television, and streaming under one corporate umbrella. Critics argue that such a merger could limit competition, reduce consumer choice, and give Netflix outsized influence over what audiences are able to watch. Regulators in the U.S. and Europe are expected to scrutinize the agreement heavily before granting approval.
There are also unanswered questions about the future of HBO Max and how its programming will be folded into Netflix’s platform. Industry observers are watching closely to see whether Netflix will maintain separate brands, merge content libraries, or restructure its subscription model in response to the acquisition.
For Hollywood, the deal represents a dramatic shift in the balance of power. Studios, theaters, creators, and competing streaming services will all be affected as Netflix evolves into a production and distribution giant with both streaming reach and deep ownership of legacy content.
For viewers, the acquisition could ultimately bring a wider range of shows and films under one subscription, although the long-term effects on pricing, availability, and content strategies remain unknown.
If the merger clears regulatory hurdles, 2026 may become a defining year for the entertainment industry—one that cements the dominance of streaming and marks the most significant realignment in Hollywood in more than a decade.