December 5, 2025, 3:54 pm | Read time: 5 minutes
It’s official: Netflix has agreed to buy Warner Bros. and HBO for $82.7 billion. The deal could have far-reaching consequences for the entire film and series industry.
Details of the Netflix and Warner Bros. Deal
Netflix aims to expand its offerings and optimize operations with the acquisition. The company expects annual savings between $2 billion and $3 billion, as reported by the U.S. industry magazine “The Hollywood Reporter.” An additional $59 billion in financing comes from a consortium of banks. In case of failure, a compensation payment of $5.8 billion is agreed upon.
Warner Bros. Discovery initially planned to split the company into a streaming and film and series production business and another for linear television. This step is still expected to occur after the deal. The linear channels, including CNN, TNT, and Discovery+, will transition into the newly structured Discovery Global business. The acquisition would solidify these plans by providing the necessary organizational and financial foundation.
For Warner Bros. Discovery shareholders, the offer includes $23.25 in cash and $4.50 in Netflix shares per share. Netflix announced it would maintain Warner Bros.’ existing operations and continue to support theatrical releases. The company gains access to well-known brands like “Harry Potter,” “Game of Thrones,” and other extensive content with the deal.
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Netflix describes the merger as an opportunity for creatives: “By combining Netflix’s member experience and global reach with Warner Bros.’ well-known brands and extensive library, the company creates greater value for creatives—with more opportunities to work with beloved stories, tell new content, and reach a broader audience than ever before.”
Co-CEO Ted Sarandos stated: “I understand some surprise about us making this acquisition, and I get that. Over the years, we’ve been known as a company that builds things, not buys them.” He also emphasized the need to evolve. Co-CEO Greg Peters added: “This acquisition will enhance our offerings and advance our business for decades.”
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Warner Bros. Discovery CEO David Zaslav also sees potential: “Today’s announcement brings together two of the world’s largest companies to deliver even more entertainment to the people who love it most.”
Skepticism in the Cinema Industry
Analysts point to access to key brand rights and Warner Bros. and HBO’s strong production base. At the same time, there is criticism. Cinema United warns: “The proposed acquisition of Warner Bros. by Netflix poses an unprecedented threat to the global cinema business.”