Streaming giant Netflix announced on Friday that it will acquire Warner Bros., including its film and television studios, HBO Max and HBO, in a massive deal valued at $82.7 billion.
Netflix said Warner Bros.’ current method of operating, “including theatrical releases for films,” will continue in an apparent effort to quell fears from critics of the acquisition.
“I know some of you’re surprised that we’re making this acquisition, and I certainly understand why. Over the years, we have been known to be builders, not buyers,” Netflix co-CEO Ted Sarandos said during an investor call Friday morning.
“We already have incredible shows and movies and a great business model, and it’s working for talent, it’s working for consumers and it’s working for shareholders. This is a rare opportunity,” he said. “It’s going to help us achieve our mission to entertain the world and to bring people together through great stories.”
Sarandos said in the official statement that the mission of Netflix “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,” the entertainment exec added.
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Co-CEO of Netflix Greg Peters expressed similar thoughts, saying, “This acquisition will improve our offering and accelerate our business for decades to come…with our global reach and proven business model, we can introduce a broader audience to the worlds they create—giving our members more options, attracting more fans to our best-in-class streaming service, strengthening the entire entertainment industry and creating more value for shareholders.”
The acquisition is expected to close once Warner Bros. completes its planned spinoff from Discovery Global, meaning the deal would potentially finalize in the third quarter of 2026. Netflix will pay a $5.8 billion reverse break-up fee if the deal doesn’t go through, while Warner Bros. agreed to pay $2.8 billion if it opts to back out.
“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,” said David Zaslav, President and CEO of Warner Bros. Discovery. “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.”
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