PATRIOT BRIEF
What Happened: Netflix struck a deal to acquire Warner Bros. for $82.7 billion, gaining HBO, HBO Max, and one of the richest film libraries in history.
Why It Matters: The merger creates a streaming-and-studio superpower with unmatched content depth, major U.S. production expansion, and billions in projected savings.
Bottom Line: If regulators approve it, Netflix just became Hollywood’s new kingmaker — and the entertainment world will never look the same.
In one of the largest entertainment deals in modern history, Netflix announced it will acquire Warner Bros. in a massive cash-and-stock transaction valuing the legacy studio at roughly $82.7 billion. The agreement unites Netflix’s global streaming dominance with Warner Bros.’ century of iconic storytelling, creating a powerhouse that will reshape the landscape of American entertainment.
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 deal delivers Netflix control of Warner Bros. film and television studios, HBO, HBO Max, and a treasure-trove of cultural staples ranging from The Wizard of Oz and Casablanca to Game of Thrones, Harry Potter, and the entire DC Universe. Netflix leaders say they intend to maintain Warner Bros.’ operations, including theatrical releases, while expanding opportunities for creatives and injecting fresh investment into U.S. production.
“Our mission has always been to entertain the world,” said Netflix co-CEO Ted Sarandos, calling the combined libraries an unprecedented offering for global audiences. Fellow co-CEO Greg Peters emphasized that Netflix’s reach, paired with Warner Bros.’ creative muscle, will enhance consumer choice while generating long-term shareholder value.
Warner Bros. Discovery CEO David Zaslav echoed the optimism, calling the union a way to ensure the studio’s legendary storytelling continues influencing global culture for generations.
The companies project the merger will deliver $2–3 billion in annual cost savings by year three and become accretive to GAAP earnings within two years. The move also deepens Netflix’s vertical integration, strengthening its studio footprint and long-term strategy as other streamers stumble.
The transaction is expected to close 12–18 months after the planned 2026 separation of WBD’s Global Networks division into a standalone company, Discovery Global. Regulatory approvals and a shareholder vote remain pending.
If completed, the deal would create the most expansive entertainment library ever assembled under one roof, signaling a new era where American streaming ambition meets Hollywood legacy.
