Netflix is buying Warner Bros. Discover for $82.7 billion, gaining HBO and franchises like Game of Thrones, DC Comics

Netflix has officially confirmed its acquisition of Warner Bros. Discovery in an $82.7 billion deal that will reshape Hollywood's power structure. The streaming giant will pay $27.75 per share in combined cash and stock to acquire the studio behind Harry Potter, DC Comics, Game of Thrones, and HBO Max.

The transaction represents the largest media consolidation in over a decade and marks Netflix's boldest move yet into traditional entertainment. The deal is expected to close in the third quarter of 2026, pending regulatory approval and Warner Bros. Discovery's planned spinoff of cable networks including CNN and TNT into a separate entity called Discovery Global.

Netflix to get century of Hollywood content and production power

The acquisition gives Netflix immediate control of one of Hollywood's most prestigious studios, complete with global theatrical distribution networks and decades of premium content. Moreover, this deal also comes as a dramatic shift for Netflix, which has historically preferred organic growth over major acquisitions. Co-CEO Ted Sarandos said the combination would unite Warner Bros.' library of classics like Casablanca and modern favorites like Harry Potter with Netflix's own titles like Stranger Things and Squid Game. David Zaslav, President and CEO of Warner Bros. Discovery, said the combination ensures resonant stories will continue to reach audiences for generations.

The combined company will command over 21% of US streaming viewership according to Bank of America analysts, who called it a strategic triple win: eliminating a major competitor, acquiring valuable intellectual property, and preventing rivals from doing the same. Warner Bros. Discovery CEO David Zaslav emphasized the merger ensures beloved stories reach audiences for generations to come.

Antitrust concerns and theater industry opposition threaten approval

The path to completion faces significant obstacles. Netflix included an unusually large $5 billion breakup fee to offset regulatory risks, signaling expectations of fierce Department of Justice scrutiny. The Directors Guild of America and Cinema United have publicly opposed the merger, warning it threatens theatrical moviegoing.

Industry critics fear Netflix will slash the window between theatrical releases and streaming availability, potentially devastating movie theaters. However, Netflix has privately assured Warner Bros. Discovery leadership it will honor existing theatrical commitments. The deal must still clear regulatory hurdles in the United States, European Union, and other key markets before closing.