Shortly after rumors of a deal between the two media giants broke, Netflix has announced it is buying Warner Bros., HBO and HBO Max for approximately $82.7 billion. If approved, the deal will take place after Warner Bros. has disentangled itself from both its legacy cable and Discovery assets as part of the already-announced de-merger. That's likely to take place in the third quarter of 2026, with this new tie-up taking place at some point after that.

In a statement, Netflix said it expects to "maintain" Warner Bros. current operations, as well as its policy of theatrical releases for its films. But the deal may spell the end for HBO Max as its own product in the longer term, as the statement also says "by adding the deep film and TV libraries and HBO and HBO Max programming, Netflix members will have even more high-quality titles from which to choose."

Naturally, the deal will see Netflix become one of the biggest players in global media, combining its global reach with some of the most recognizable names in entertainment. That includes HBO, DC Studios, Cartoon Network, its game development studios and TCM, as well as the chunks of TNT not cast adrift with Discovery. 

It's likely the deal will not go ahead without a lot of objections from other buyers, as well as the government itself. Yesterday, Paramount Skydance said (via the Hollywood Reporter) any deal between WB and Netflix would be the result of an "unfair" process. Given the close ties between Paramount's new owners and the administration, it's likely any deal will be subject to scrutiny as well as the usual questions around the size of the combined operation.

Since the announcement was made, Engadget senior reporter Devindra Hardawar has spoken with Hollywood players and collated studies and statements to answer any burning questions you might have on what this deal means for you. He also answers questions about the likelihood of regulatory approval, theatrical releases and physical media. Catch up on all that in his piece titled “The Netflix and Warner Bros. deal might be great for shareholders, but not for anyone else.”

Update, December 5 2025, 1:45PM ET: This story has been updated to add a paragraph and link to a new article we’ve published that contains deeper analysis and more information about the Netflix/Warner Bros. deal and what that might mean for streaming, movies, TV and shareholders.

This article originally appeared on Engadget at https://www.engadget.com/entertainment/netflix-to-buy-warner-bros-for-827-billion-120836295.html?src=rss

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Netflix is in exclusive talks to acquire Warner Bros. Discovery's film and TV studios and HBO Max streaming service, according to sources from Bloomberg. That suggests Netflix submitted a superior offer to rivals including Paramount Skydance Corp (owned by billionaire Larry Ellison) and Comcast, which owns NBCUniversal. The deal could be consummated within days and, if approved, would change the landscape of Hollywood and the streaming market. 

Warner Bros. Discovery's cable channels including CNN, TBS and TNT, valued at more than $60 billion, would not be part of the deal and spun off prior to the closing. However, Netflix would become the owner of the HBO network and its library of series (The Sopranos, Game of Thrones, etc.), along with its Burbank studios and massive film and TV archive consisting of 12,500 feature films and 2,400 TV series, including properties like Batman, Lord of the Rings and Friends. 

A big sweetener offered by Netflix was a $5 billion breakup fee if the deal isn't approved by regulators, according to people familiar with the discussions. That's a considerable risk on Netflix's part, as the acquisition is likely to be closely scrutinized by the FCC and even President Trump himself, who reportedly has close ties to Ellison. It would also need to pass muster with regulators from other nations, considering the wide reach of WBD and Netflix. 

After multiple suitors, including Paramount Skydance expressed interest in buying Warner Bros. Discovery, CEO David Zaslav put the company up for sale in October. The bidding process has been heated, with Paramount's lawyers complaining that WBD "embarked on a myopic process with a predetermined outcome that favors a single bidder," namely Netflix. Paramount argued that its deal would be more palatable to regulators around the world.

However, Zaslav's camp has said that it would achieve the best value in a sale by splitting off its cable assets and doing two separate deals, CNN reported. Both Paramount Skydance and Comcast submitted deals to buy all of WBD's assets. 

Netflix offered around $28 a share for WBD minus the cable assets, according to Deadline. Shares were as low as $7.50 earlier this year. The acquisition would be far and away the largest for Netflix, which has historically favored organic growth. 

An acquisition could have a huge impact on streaming customers and filmgoers. Would Netflix merge its catalog with HBO Max or continue to run the latter as a separate service? It's also not clear if Netflix would honor Warner Bros.' commitment to theatrical releases, considering that Netflix CEO Ted Sarandos has called movie theatres an "outdated concept."

This article originally appeared on Engadget at https://www.engadget.com/entertainment/streaming/netflix-is-reportedly-in-exclusive-talks-to-acquire-warner-bros-and-hbo-082233278.html?src=rss

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