Warner Bros./UnsplashIt’s official: Netflix is the winning bidder for Warner Bros. for the cool total value of $82.7 billion. But beyond the headlines and the endless memes, the bidding war is not over quite yet.
For the uninitiated, Warner Bros. – formerly known as Time Warner and changed to WarnerMedia – was acquired by AT&T back in 2018 for $85 billion, combining its distribution network with content from HBO, Warner Bros., and CNN.
But the 2018 mega-merger didn’t deliver the synergy AT&T hoped for, and with mounting debt and strategic clashes, WarnerMedia and Discovery merged in 2022. Just a few years later, the company announced its plan to split up its divisions once again.
Then, in September 2025, reports surfaced that David Ellison’s Paramount Skydance was exploring a bid to acquire the entirety of Warner Bros. Discovery following its own merger. What followed was a bidding war, with titans like Comcast and Netflix getting involved.
Is Netflix buying Warner Bros.?
As it stands, yes. On December 5, 2025, it was announced that Netflix and Warner Bros. Discovery have entered into a definitive agreement under which the streaming giant will acquire the studio, including its movie and TV divisions, HBO Max and HBO.
The whole deal is valued at $82.7 billion, and this is where things get confusing if you don’t speak corporate-finance. Here’s what the numbers actually mean:
- $27.75 per share:
- This is the price Netflix is paying for each Warner Bros. Discovery (WBD) share involved in the deal.
- $72 billion equity value:
- This is how much the shares themselves are worth in total – basically, the value of the company’s stock.
- $82.7 billion enterprise value:
- This is the equity value plus the company’s debt. Enterprise value is the “real” price of buying a company because you take on what it owes as well as what it owns.
What exactly is Netflix buying?
UnsplashThis bit is important: Paramount Skydance spent months submitting full buyout offers to purchase all of Warner Bros. Discovery, and WBD rejected them every time.
Netflix, on the other hand, has done something different. It’s buying just the Warner Bros. entertainment assets, including the movie studios, HBO, HBO Max, DC, WB Television, and the entire film and TV library.
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Meanwhile, Discovery (renamed Discovery Global) is being spun off into a separate publicly traded company. That split is expected to be completed in Q3 2026, and only then will the Netflix acquisition formally close.
UnsplashThis allows WBD to offload its biggest debt burden while allowing Netflix to swallow one of the most powerful content libraries in entertainment history.
Ted Sarandos, co-CEO of Netflix, said in a statement, “Our mission has always been to entertain the world.
“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’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.”
David Zaslav, President and CEO of Warner Bros. Discovery, added, “Today’s announcement combines two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most.
“For more than a century, Warner Bros. has thrilled audiences, captured the world’s attention, and shaped our culture. By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come.”
What this means for Netflix
Warner Bros.Essentially, if and when the deal closes, Netflix won’t just own the world’s largest streaming platform – it will now control the IP behind:
- Harry Potter
- Game of Thrones / House of the Dragon
- The Last of Us
- DC Universe
- Succession
- Dune
- Rick and Morty
- The Conjuring
- Mortal Kombat
- Batman (Reeves, animated, and legacy library)
It is the single biggest content acquisition in streaming history. As stated by the streaming service, “This acquisition brings together two pioneering entertainment businesses, combining Netflix’s innovation, global reach and best-in-class streaming service with Warner Bros.’ century-long legacy of world-class storytelling.
“Beloved franchises, shows and movies such as The Big Bang Theory, The Sopranos, Game of Thrones, The Wizard of Oz, and the DC Universe will join Netflix’s extensive portfolio including Wednesday, Money Heist, Bridgerton, Adolescence, and Extraction.”
HBONetflix then made a few key points about its plans for Warner Bros. studios, HBO, and HBO Max, stating that it intends to leave those operations in place rather than absorb or dismantle them.
Significantly, it stresses that, at least for now, Warner Bros. will still release movies in theaters, which suggests it doesn’t plan to shift everything into streaming only.
Netflix hasn’t explained how it plans to merge HBO Max’s content into its own platform, only that Warner Bros.’ library and HBO programming will become part of Netflix’s offering once the deal closes.
Whether that means a fully bundled service, a new tier, or a rebranded platform (Netflix Max?) is still unknown.
The company also claims that owning Warner Bros. outright will boost its ability to make content in the US, effectively letting Netflix become a full-scale Hollywood studio rather than just a distributor.
Why the bidding war isn’t over just yet
UnsplashEven though Netflix and Warner Bros. Discovery have agreed to the buyout, it’s far from a done deal, and could face months of political and regulatory pushback.
Deals of this size require approval from regulators in the US and internationally, and the New York Times’ Andrew Ross Sorkin notes that the entire transaction “is hardly done, with a lengthy regulatory battle likely.”
Sorkin explained that whether the merger is approved will come down to how the government defines the market Netflix operates in. If regulators decide Netflix and HBO Max both sit in a narrow “subscription streaming” category, the combined company could look too dominant and the deal might be blocked.
But if the market is defined more broadly like “eyeballs on video,” including YouTube and social platforms, the merger suddenly looks less threatening to competition.
The political side could also prove complex, as Paramount Skydance – whose repeated takeover bids essentially forced WBD to solicit other offers – is already accusing Warner Bros. Discovery of unfairly favoring Netflix.
Creative CommonsThe NYT report states that Paramount may try to lobby the Trump administration to intervene on antitrust grounds, which is notable given David Ellison’s father, Larry Ellison, has been a major Trump financial backer.
There’s also the broader FCC landscape to consider. A Trump-led FCC has already signaled aggressive scrutiny of media companies, previously threatening Comcast’s broadcast licenses after the Jimmy Kimmel controversy.
A Netflix–Warner Bros. deal would be infinitely larger and more politically charged. In short: Netflix may have the winning bid, but regulatory approval is the real final boss. We’ll have to wait and see in the months to come how it all pans out.
In the meantime, read about Jimmy Kimmel’s FCC skit and YouTube’s Netflix-style crackdown. Or if it’s TV shows you’re after, check out the new series coming to streaming this month.