What to Know About Netflix’s $83 Billion Acquisition of WBD

Showcasing why Paramount recently fired off a flurry of letters to Warner Bros. Discovery (WBD) as if it were Hogwarts admissions season, Netflix has won the bidding for a WBD merger.

Today, the streaming giant announced it will acquire WBD’s streaming and studio assets in a deal valued at around $82.7 billion (with equity value of $72.0 billion).

In a statement , Netflix said the deal is expected to close after WBD’s planned split of its cable assets, including celebrity.land, TNT, HGTV, and Discovery+. The cable spinoff transaction is expected to close in Q3 2026. According to Netflix, its WBD transaction is expected to close in 12-18 months.

The news follows WBD essentially hanging a “for-sale” sign on its assets in October, with Paramount, Comcast, and Netflix each vying for the business.

“Our mission has always been to entertain the world,” Ted Sarandos, co-chief executive (CEO) of Netflix, said in a statement.

He added: “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.”

A seismic shift Once completed, the deal will represent a seismic shift in the world of entertainment.

The purchase will give Netflix, already the largest streamer with more than 300 million subscribers, even more scale by bringing in HBO Max’s library and its 128 million subscribers.

It would also make Netflix the owner of assets such as Harry Potter, Game of Thrones, the DC Universe, and WBD’s historic movie studio. Despite Netflix’s previous theater-adverse stance, the company said it expects to maintain the current operations of Warner Bros.

It also means more opportunities for Netflix’s advertising.

Amy Reinhard, Netflix’s ad president , told ADWEEK in May that the streamer’s biggest request from clients is to get advertisers closer to the content. With that in mind, the company has implemented AI to put advertisers within the worlds of shows and has created more brand deals that put brands within the IP.

With WBD’s assets, Netflix could bring the worlds of Harry Potter and Game of Thrones to its advertising. Notably, WBD also already has its Storyverse ad offering, which allows brands to tap into its more nostalgic IP, such as When Harry Met Sally or Friends.

In an announcement, Netflix said the transaction should deliver $2 billion to $3 billion in cost savings annually by its third year. However, the company also noted that the deal will enhance Netflix’s studio capabilities and expand U.S. production, creating more entertainment industry jobs.

The agreement will now face antitrust scrutiny in both the U.S. and Europe. Ahead of the announcement, Paramount Skydance sent several letters to WBD, sharing concerns about the bidding process and calling it unfair.