Joshua
Netflix has agreed to acquire the film and streaming businesses of Warner Bros. Discovery (WBD) for approximately $82.7 billion (enterprise value), but the deal is not yet finalized and faces significant opposition. The agreement was announced on December 5, 2025, after a bidding war with rivals like Paramount and Comcast
Deal Overview
- Acquisition Scope: Netflix is set to acquire WBD’s film and television studios, the HBO and HBO Max streaming services, and Warner Bros. Games.
- Excluded Assets: WBD’s global networks division, including cable channels like CNN, TNT Sports in the U.S., and Discovery channels, will be spun off into a separate, independent public company named Discovery Global before the Netflix deal closes.
- Timeline: The transaction is expected to close in 12 to 18 months, likely after the Discovery Global spin-off is completed in the third quarter of 2026.
- Goal: The acquisition aims to combine Netflix’s massive global reach and modern hits (like Stranger Things and Squid Game) with Warner Bros.’ century-long library of iconic franchises, including Harry Potter, the DC Universe, Game of Thrones, and classics like Casablanca
Competition and Opposition
The deal is far from certain and has generated substantial controversy:
- Rival Bid: Paramount Skydance launched a rival, hostile takeover bid for the entire Warner Bros. Discovery company for $108.4 billion in an all-cash offer, which it argues is a superior alternative. WBD’s board is reviewing this offer.
- Regulatory Scrutiny: The merger is expected to face intense scrutiny from competition authorities in the U.S. and Europe due to concerns it will create a near-monopoly in the streaming market, reduce consumer choice, and lead to higher prices. U.S. lawmakers from both parties, including Senator Elizabeth Warren, have voiced significant concerns.
- Industry Backlash: Major industry unions, including the Writers Guild of America (WGA) and the Directors Guild of America (DGA), have criticized the deal, arguing it would eliminate jobs, push down wages, and harm the theatrical film business. Cinema United, a trade group for theater owners, called the deal an “unprecedented threat” to cinemas.
- Breakup Fees: The stakes are high, with Netflix agreeing to pay a $5.8 billion termination fee if the deal fails to clear regulatory hurdles. Conversely, WBD would pay Netflix a $2.8 billion fee if it accepts a different offer, such as Paramount’s
