Netflix has agreed to buy Warner Bros Discovery (WBD) and its assets in a definitive agreement for $82.7 billion deal. This marks the largest consolidation event in the history of the streaming era.
The transaction, announced on 5 December 2025, will see Netflix absorb the Warner Bros. film and television studios, along with HBO and HBO Max. When the agreement is finalized, it will effectively end the 'streaming wars,' creating an undisputed market leader.
End of Bidding War in Hollywood
The acquisition is structured to separate WBD's high-growth assets from its declining linear television portfolio. The transaction is expected to be finalized after the scheduled separation of WBD's Global Networks division, branded as Discovery Global, to become an independent, publicly traded entity by the third quarter of 2026.
This maneuver allows Netflix to acquire the 'crown jewels' of the portfolio, including the DC Universe and the Harry Potter franchise, without taking on the operational weight of traditional cable networks like CNN, HGTV, and The Food Network. The deal will officially close after clearing required regulatory approvals, WBD shareholders' approval, and other customary closing conditions. The entire process could take 12 to 18 months to complete.
The agreement also signals the end of the bidding war for the latter's assets, which drew competitive offers from rival media giants such as Paramount and Comcast. This landmark deal will bring major intellectual property rights under Netflix's banner, granting the company exclusive ownership of a number of popular TV series and movie franchises that were previously walled off on HBO and HBO Max.
The merger will expand Netflix's content library and turn it into a true entertainment behemoth. Subscribers can expect to access titles such as Game of Thrones, Harry Potter, The Wizard of Oz, and the DC Universe. These will be added to Netflix's own global hit lineup that includes Wednesday, Squid Game, and Money Heist.
'Our mission has always been to entertain the world,' Netflix's co-Chief Executive Officer, Ted Sarandos, said in a press release.
'By combining Warner Bros.' incredible library of shows and movies—from timeless classics like Casablanca and Citizen Kane to modern favorites like Harry Potter and Friends—with our culture-defining titles like Stranger Things, KPop Demon Hunters and Squid Game, we will 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.'
Will the Merger Combine Netflix and HBO Max And Affect Streaming Prices?
The official announcement provided no specific details on whether Netflix and HBO Max will merge into a singular streaming service once the deal closes. Similarly, the companies remained silent on future subscription prices or potential bundle options, according to USA Today.
Despite the lack of an official statement, industry analysts and observers widely speculate that this massive consolidation of content and market power will inevitably cause consumer subscription fees to increase. With the elimination of a major competitor, Netflix will have greater pricing power, potentially signalling the end of the aggressive discounting that characterized the early streaming boom.
Whether the influx of HBO and HBO Max content will drive a surge in new subscribers or plan upgrades remains to be seen. While many observers believe consumers will greatly appreciate the expanded viewing choices, their enthusiasm could be curbed by possible price increases.
Analysts suggest the best way forward is for Netflix to introduce more tiered pricing structures to maximize audience reach and overall benefit.
