Blockbuster merger: Netflix acquires Warner Bros. for $82.7 billion
Will regulators play ball?
by Shawn Knight · TechSpotServing tech enthusiasts for over 25 years.
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TL;DR: Netflix has agreed to purchase Warner Bros. as part of a colossal deal valued at $82.7 billion. The purchase, which includes HBO and HBO Max, works out to $27.75 per share of Warner Bros. Discovery – a modest premium over the $24.57 the stock closed at on Thursday afternoon. The deal isn't expected to close until late next year – that is, if regulators don't step in first.
The acquisition will further add to Netflix's extensive portfolio of AAA movies and TV shows. Fan favorites including The Sopranos, Game of Thrones, and The Wizard of Oz will soon sit alongside Netflix staples like Stranger Things and new shows in the streaming giant's library.
Content is king and ultimately, the deal will give Netflix subscribers even more options to choose from and more of a reason to spend additional time streaming. A bigger catalog also helps Netflix justify its current subscription rate and future price hikes.
It's not just about adding more content to its catalog. Netflix also plans to leave Warner Bros.' current operations in place, which includes theatrical releases for films. The acquisition will additionally expand Netflix's production capacity in the US and allow the company to further invest in original content, we are told.
And there may be more to the story than meets the eye. According to The Hollywood Reporter, a key driver behind Netflix's interest in Warner Bros.' library had to do with the potential to train future AI models on the content. The streaming giant could even allow subscribers to create memes or video content based on WB assets – a strategy that could mirror what executives at Disney expect to happen on their platform soon.
The Warner Bros. acquisition is expected to close no sooner than Q3 2026, and could face significant pushback from regulators and those in the motion picture industry. Netflix reportedly included a $5 billion breakup fee in the deal to help persuade Warner Bros. to sign on the dotted line.