Maya Robertson
Netflix has entered exclusive negotiations to acquire Warner Bros. from Warner Bros. Discovery (WBD), a move that positions the streaming giant to absorb one of Hollywood’s most historic studios and the HBO Max streaming business in a deal valued at roughly $72 billion.
The development follows a weeks-long bidding contest involving Paramount Skydance and Comcast, both of which submitted competing offers. Netflix’s bid—estimated at around $28 per share for the studio and streaming assets—ultimately secured an exclusive window to finalize terms, according to sources close to the process. Paramount Skydance had sought to buy the entire company, including the cable networks that WBD plans to spin off.
Today, Netflix announced our acquisition of Warner Bros. Together, we’ll define the next century of storytelling, creating an extraordinary entertainment offering for audiences everywhere. https://t.co/rXPFMNIs1A pic.twitter.com/0pdsMUEob8
— Netflix (@netflix) December 5, 2025
The potential acquisition marks a significant departure for Netflix, which has historically avoided large-scale takeovers. Executives Ted Sarandos and Greg Peters have long argued that Netflix could expand without relying on legacy studios. But the chance to secure Warner Bros.’ film and television operations, along with the extensive HBO catalog, appears to have altered that position.
If completed, the deal would fold Warner Bros.’ century-old studio, HBO, HBO Max, and libraries that include DC Comics, Harry Potter, Game of Thrones, Friends, and numerous classic films into Netflix’s global platform.
WBD is still moving forward with its previously announced plan to separate its Global Networks division—including CNN, TNT Sports, Discovery networks, and several international channels—into a standalone company called Discovery Global. Netflix would acquire the remaining studio and streaming businesses after the split, now expected in the third quarter of 2026.
Under the current structure, WBD shareholders would receive $23.25 in cash and approximately $4.50 in Netflix stock per share, subject to pricing adjustments. The enterprise value of the transaction is estimated at $82.7 billion when including debt.
Paramount Skydance—initially seen as the leading contender—reacted sharply to Netflix’s progress. In a letter to WBD earlier this week, Paramount alleged that the sale process was “tainted” by potential management conflicts of interest, pointing to recently amended executive compensation packages tied to a sale. Paramount executives also argued that Netflix’s bid would face significant antitrust barriers, especially given the streamer’s market dominance in the U.S. and abroad.
Comcast had also entered the bidding for the studio and streaming units but did not compete for the cable networks.
Any agreement between Netflix and WBD is expected to undergo intense scrutiny in Washington and internationally. Political figures, including Senator Mike Lee, have already raised concerns about what consolidation of two major streaming services could mean for competition, consumer prices, and licensing markets.
Regulators under the Trump administration are expected to take a particularly close look at whether merging Netflix with HBO Max would reduce consumer choice or distort the streaming and theatrical markets.
Industry groups reacted swiftly once Netflix secured exclusive negotiating rights. The Directors Guild of America said the prospect raises “significant concerns,” arguing that a highly consolidated industry could limit opportunities for creative workers.
Cinema United, the trade group representing movie theater owners, called the proposed deal an “unprecedented threat” to theatrical exhibition. The organization warned that fewer studios and fewer movies could result in theater closures, reduced revenue for local economies, and diminished long-term output for cinemas.
Despite such concerns, Netflix has communicated to WBD that it plans to maintain Warner Bros.’ existing theatrical release strategy. However, the streamer’s past reluctance to commit to extended theatrical windows continues to drive unease among exhibitors.
If the merger proceeds, Netflix would gain control of one of the most valuable collections of intellectual property in entertainment—an outcome some analysts say could effectively end the long-running “streaming wars.” With 260+ million global subscribers already, Netflix’s footprint would expand to include one of Hollywood’s largest production infrastructures and catalogs.
Yet the deal remains far from assured. Shareholder approval, regulatory clearance, the completion of WBD’s corporate split, and potential political pushback all stand between the companies and closing a transaction that could reshape Hollywood for years.
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