Netflix to purchase Warner Bros. film and streaming businesses

While the advertising world is watching the dust continue to settle on the long-awaited Omnicom acquisition of IPG, another big deal in the entertainment world is raising plenty of eyebrows: Netflix is acquiring Warner Bros. Discovery’s film business and streaming assets, which includes HBO Max.

“Our mission has always been to entertain the world,” said Ted Sarandos, co-CEO of Netflix in a release. “By combining Warner Bros.’ incredible library of shows and movies — from timeless classics like Casablanca and Citizen Kane to modern favourites like Harry Potter and Friends — with our culture-defining titles like Stranger Things, KPop Demon Hunters and Squid Games, we'll be able to do that even better. Together, we can give audiences more of what they love and help define the next century of storytelling.”

Netflix plans to acquire the Warner Bros. assets in a cash and stock transaction with an enterprise value of approximately $82.7 billion and an equity value of $72 billion. Based on information released to Netflix investors, the deal values each WBD share at $27.75. The acquisition is expected to close in Q3 2026, contingent on WBD first spinning off its Global Networks division, Discovery Global, into a new publicly traded company.

The sale was no secret, as Warner Bros. had made it known that its assets were up for grabs to the highest bidder several months ago. Netflix beat out Paramount and Comcast for the storied studio’s assets, which include classics such as The Wizard of Oz and recent hits including Game of Thrones.

Potential pushback from regulators

Netflix has suggested the deal will create jobs while giving subscribers access to more content with affordability. But Reuters reports that, even before the deal was announced, there was criticism by Republicans in Congress, who warned the deal might reduce consumer choice by giving one company an unfair higher share of the streaming market.

The deal is sure to be scrutinised as it moves forward, though Netflix appears to see it as a done deal.

“This acquisition will improve our offering and accelerate our business for decades to come,” said Greg Peters, co-CEO of Netflix. “With our global reach and proven business model, we can introduce a broader audience to the worlds they create — giving our members more options, attracting more fans to our best-in-class streaming service, strengthening the entire entertainment industry and creating more value for shareholders.”

Warner Bros. Discovery president and CEO David Zaslav was equally positive about the deal, stating it will combine “two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most.”

The streamer has had a busy few weeks, with the opening of its first Netflix House and launch of video games playable through users' mobile phones. An immersive experiential space housing retail, dining and entertainment inspired by some of the network’s most popular shows and films, the 100,000 square foot complex located at King of Prussia Mall in Pennsylvania opened to the public on November 12, as Campaign reported here.