Netflix set to acquire Warner Bros. in $82.7bn deal

• Netflix will acquire Warner Bros. in an $82.7 billion deal.
• Iconic franchises to join Netflix include Harry Potter, Game of Thrones, Friends and DC.
• Game studios Rocksteady Studios, NetherRealm Studios, TT Games, Avalanche Software, and WB Games Montréal will become part of the streaming giant's games division.
• Netflix will maintain Warner Bros.’ operations and expand its global content reach.

Netflix is set to acquire Warner Bros. in a deal worth $82.7 billion.

The move marks one of the most significant acquisitions in entertainment history. It will see Netflix snap up Warner's film and television studios including HBO and HBO Max, as well as pick up key franchises like The Wizard of Oz, Harry Potter, and DC. 

The deal also sees the streaming giant pick up Warner's games division, which includes Rocksteady Studios, NetherRealm Studios, TT Games, Avalanche Software, and WB Games Montréal. No mention of the company's games division or its plans for the studios was made in Netflix's announcement.

Warner Bros. Discovery shareholders will receive a combination of cash and Netflix stock per share, reflecting a total equity value of approximately $72 billion. The full enterprise value of the deal is approximately $82.7bn.

The transaction is expected to close in the next 12 to 18 months after the separation of Discovery Global into a new publicly-traded company in Q3 2026, subject to regulatory approval.

Expanding reach

Netflix said it intends to maintain Warner Bros.’ existing operations, including theatrical releases, while integrating the studio’s library to deepen content offerings and expand its global reach.

The company expects that the combined business will drive subscriber growth and deliver $2 to £3 billion in annual cost savings by year three. 

“This acquisition will improve our offering and accelerate our business for decades to come," said Netflix co-CEO Ted Sarandos.

"By combining Warner Bros.’ incredible library of shows and movies - from timeless classics like Casablanca and Citizen Kane to modern favourites 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.” 

Warner Bros. Discovery president and CEO David Zaslav added: “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.

“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.”

Learn more about the intersection of games, TV and film at the Pocket Gamer Connects London Beyond Games: Transmedia Summit on January 20th, 2026.