In a move set to redefine the global media landscape, streaming titan Netflix has confirmed its intention to purchase entertainment conglomerate Warner Bros. Discovery. The monumental agreement, valued at nearly $83 billion, was announced on Friday, December 5, 2025, marking the largest consolidation in the entertainment sector in over half a decade.
A New Entertainment Colossus Emerges
The acquisition grants Netflix an unprecedented expansion of its content empire. The deal provides access to Warner Bros. Discovery's immense catalog of iconic films and television series, alongside control of the prestigious premium streaming service, HBO Max. This library includes timeless classics like "Casablanca" and "Citizen Kane," modern blockbuster franchises such as "Harry Potter," and critically acclaimed series like "The Sopranos" and "Game of Thrones."
Ted Sarandos, co-CEO of Netflix, stated that the union of the two companies will allow them to give audiences more premium content and help shape the future of global storytelling. Netflix, known for hits like "Stranger Things" and "Squid Game," will now integrate a century's worth of Warner Bros. storytelling.
Financial Details and Market Impact
The transaction values Warner Bros. Discovery at $27.75 per share, implying a total equity value of approximately $72.0 billion. When including debt, the enterprise value reaches around $82.7 billion. This surpasses Disney's $71 billion acquisition of 21st Century Fox in 2019, making it the industry's biggest deal this decade.
Warner Bros. Discovery shares had closed at $24.54 on the Nasdaq the day before the announcement. David Zaslav, President and CEO of Warner Bros. Discovery, echoed the historic nature of the deal, calling it a combination of "two of the greatest storytelling companies in the world." The boards of both companies unanimously approved the transaction, which is expected to close within 12 to 18 months.
Regulatory Hurdles and Industry Concerns
Analysts were quick to highlight the significant challenges ahead. Kathleen Brooks, research director at trading firm XTB, noted that the deal positions Netflix to "dominate Hollywood," but also raises immediate concerns about potential antitrust issues. She warned that creating such a "colossus in the TV and movie business" would inevitably attract intense scrutiny from competition regulators in the United States and other jurisdictions.
Further concerns center on Netflix's ability to manage a merger of this unprecedented scale, a factor that may have contributed to a weakening of its stock price amid speculation before the official announcement. The path to regulatory approval is expected to be complex, given the combined entity's vast market power in content creation and distribution.
Warner Bros. Discovery, the parent company of HBO, CNN, and the Warner Bros. film studio, had officially put itself up for sale in October 2025 after receiving multiple unsolicited offers. This move set aside an earlier plan to split into two separate companies focused on streaming and traditional cable networks, respectively.