Netflix to Acquire Warner Bros for $82.7 Billion: What the Deal Means for Streaming and Gaming

Netflix has officially reached an $82.7 billion agreement to acquire Warner Bros., including its film, TV, streaming, and video game operations.

Netflix–Warner Bros Deal | Image via Gaming Amigos

In a press release, Netflix confirmed that it has entered a "definitive agreement" to purchase Warner Bros once the studio completes its planned split between the Streaming & Studios and Global Networks divisions.

The transaction is expected to close between late 2026 and early 2027.

Once finalized, Netflix will own Warner Bros.’ iconic film and television studios, HBO and HBO Max, and an enormous portfolio of franchises, including Harry Potter, Game of Thrones, The Sopranos, DC Comics, and countless classics. And that’s not all—Warner Bros. Games will be part of the package too.

A spokesperson confirmed to Game Developer that the recently restructured gaming division—home to NetherRealm (Mortal Kombat), Rocksteady (Batman: Arkham), Avalanche (Hogwarts Legacy), and TT Games (LEGO titles) will move under Netflix as well.

Netflix co-CEO Ted Sarandos said the merger will strengthen the company’s long-term mission.

“Our mission has always been to entertain the world,” Sarandos stated. “By combining Warner Bros.’ incredible library—from classics like Casablanca to modern favorites like Harry Potter and Friends—with our culture-defining titles such as Stranger Things and Squid Game, we can give audiences even more of what they love.”

Co-CEO Greg Peters added that Warner Bros.’ global legacy and production capabilities can "improve our offering and accelerate our business for decades to come."

The Company anticipates at least $2-3 billion of cost savings per year by the third year and expects the deal to boost GAAP earnings per share by the second year.

Naturally, the deal faces intense regulatory scrutiny. The U.S. Department of Justice is expected to closely examine the merger, and Netflix has reportedly agreed to a $5 billion breakup fee if regulators reject the purchase, according to The Wrap.

Opposition is already anticipated due to the size of both companies and the potential impact on theatrical distribution. Several Hollywood groups have voiced concerns that Netflix’s streaming-first approach could disrupt cinema operations, though Netflix insists it plans to maintain Warner Bros.’ theatrical commitments.

The Deal at a Glance:

Acquisition Value & Deal Structure

• Netflix is acquiring Warner Bros. for $82.7 billion total enterprise value.

• The equity value of the deal is $72 billion.

• The per-share value for WBD shareholders is $27.75 per share.

• Breakdown per share:

  • $23.25 in cash

  • $4.50 in Netflix stock

• Netflix has pledged a $5 billion breakup fee if regulators block the deal (as per Bloomberg and earlier reports).

Timeline

• Deal expected to close in 12–18 months.

• Will close after Warner Bros. Discovery spins off Discovery Global in Q3 2026, as follows:

  • The Streaming & Studios company: Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO, HBO Max, and Gaming Division.

  • Global Networks company: CNN, TNT Sports, Discovery, Discovery+ streaming service, and Bleacher Report (B/R)

• Expected sale completion by September 30, 2026.

Major Franchises Joining Netflix

Category	Specific Assets Included	Notable Examples/Highlights
Film Studios	Warner Bros. Motion Picture Group, New Line Cinema, Warner Bros. Pictures	Theatrical distribution apparatus; franchises like Harry Potter, Batman (DC Comics), The Lord of the Rings, The Matrix, Dune, and classics like Casablanca. Netflix will honor existing theatrical windows.
Television Studios	Warner Bros. Television, HBO Studios	Hit series such as Game of Thrones, The Sopranos, Friends, The Big Bang Theory, Succession, and Ted Lasso. Includes ongoing production and development pipelines.
Streaming Service	HBO Max and HBO	Full integration into Netflix's platform; potential bundling options for subscribers. Adds HBO's premium content library and subscriber base.
DC Studios	DC Comics film/TV division	Superhero universe including Superman, Wonder Woman, The Flash, and upcoming projects like Supergirl: Woman of Tomorrow.
Content Libraries	Extensive film and TV archives	Turner Entertainment catalog, MGM pre-1986 titles (e.g., Singin' in the Rain), HBO originals, and thousands of hours of scripted/unscripted content.
Gaming	Warner Bros. Games	Studios like Rocksteady (Batman: Arkham) and NetherRealm (Mortal Kombat); mobile and console titles tied to WB IPs.
Other	Global production facilities and talent deals	Access to Warner Bros.' international co-production partnerships and creator agreements.

What's Not Included

• Global Networks/Discovery Global: Cable TV channels (e.g., CNN, TNT, HGTV, Discovery Channel), sports assets (TNT Sports, Bleacher Report), and linear TV operations worldwide. These will spin off as a separate public company led by WBD CFO Gunnar Wiedenfels.