Netflix acquires Warner Bros. In a devastating deal worth $82.7 billion

In one of the most groundbreaking deals the streaming world has ever seen, Netflix on Friday announced the acquisition of Warner Bros. Entertainment. With an enterprise value of $82.7 billion.

This agreement includes both HBO Max and HBO Studios, marking one of the largest mergers in Hollywood history. By making this move, Netflix is ​​not only solidifying its number one position, but also significantly enhancing its content library, gaining access to well-known franchises such as DC Comics, Game of Thrones, and Harry Potter.

While Netflix boasted more than 300 million paid subscribers in January, HBO Max, in conjunction with Discovery+, currently has about 128 million subscribers.

In addition, the size of Netflix’s offer is notable, with the streaming giant investing $72 billion, which exceeds the amount of Warner Bros. The full market value is $60 billion.

However, this merger is not without challenges. It could face antitrust scrutiny.

In November, Senators Elizabeth Warren, Bernie Sanders, and Richard Blumenthal expressed concerns about the potential sale. The trio sent a letter to the Justice Department’s antitrust division indicating that any agreement would be viewed “under a cloud of political favoritism and corruption.”

In addition, many industry players express their views. According to Variety, an anonymous group has reportedly sent a letter to Congress urging them to publicly oppose Netflix’s bid.

Warner Bros. offered Discovery itself is officially for sale in October, saddled with debt and disappointing streaming growth. The company attracted interest from several suitors, and Paramount was seen as the frontrunner.

The acquisition is expected to be completed in the third quarter of 2026, after Warner Bros. follows through. Discovery plans to separate from Discovery Global, which includes its portfolio of pay-TV networks, such as TNT and CNN.

The companies estimate that the deal, a combination of cash and stock, will be completed within 12 to 18 months.