Netflix to buy WBD’s streaming and studios division

Streaming giant Netflix has wrapped a definitive agreement to acquire Warner Bros. Discovery’s streaming and studios division.

That division, which is often referred to as simply “Warner Bros.,” includes the HBO Max streamer, as well as a vast library of film and television titles and their associated intellectual property.

Netflix will pay around $82.7 billion in cash and stock for the assets. 

The deal is expected to close after WBD finishes separating itself into two divisions, which is expected to happen in the third quarter of 2026.

Netflix’s deal does not include the global networks division, known as Discovery Global, which is primarily made up of linear networks such as CNN, TNT, TBS, Discovery, Food Network and HGTV, among others. Current WBD management is likely to still consider options to sell these assets as well, especially given they are widely seen as the weaker of the two parts and could benefit from combining with another linear-focused company. 

HBO, which began as a premium linear cable offering, is grouped with the studios and streaming portion of WBD and is expected to become part of Netflix when the deal closes.

Netflix stands to gain a huge library of content and IP, including franchises such as Harry Potter, DC Universe, The Big Bang Theory, The Sopranos and Game of Thrones. It will also nab the rights to films ranging from “Casablanca,” “Citizen Kane” and “The Wizard of Oz.”

In its announcement, Netflix noted that it is looking to capitalize on continuing to offer HBO and HBO Max as “complementary” offerings, which could suggest that both brands will continue to be sold separately. 

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Netflix also noted that it expects to continue to run Warner Bros.’ various studio operations, including continuing to offer theatrical releases while also leveraging those assets to enhance its ability to produce original content. 

The streamer also noted that it will “optimize” its plans, which could be seen as a hint that pricing and bundling updates could be introduced at some point. 

For Netflix, snapping up the streaming and studios business under the iconic Warner Bros. name has some parallels to when AOL, at the height of the dot-com craze, acquired legacy media company Time Warner, which would eventually split up and see many of its assets become the basis of WBD.

Assuming HBO Max continues to be offered separately from Netflix, the move would also align with Disney’s strategy of offering both Disney+ and Hulu. Like Disney, Netflix could also capitalize on efficiencies such as eventually merging the two platforms’ tech stack while also offering consumers more robust bundles to gain access to both services.

The deal still faces regulatory approval, including the open question of antitrust issues, though trend of decreasing regulatory restrictions could prove to advantageous to the deal.

The agreement is already facing criticism for allowing one company to dominate the streaming and entertainment industry, as well as potential job losses and a decrease pool of opportunities for creatives.

Netflix hedged those concerns by saying it “will create greater value for talent — offering more opportunities to work with beloved intellectual property, tell new stories and connect with a wider audience than ever before,” in its announcement, using phrasing that largely aligns with other media merger announcements to ward off any concern about opportunities for creatives.

In July 2025, WBD announced its intent to split itself into two divisions in a move similar to the one Comcast is currently putting the finishing touches on for most of its linear assets which are set to become Versant in the near future.

Versant itself had been bandied around as a possible suitor for WBD’s linear businesses, though it’s not clear if that might still be a possibility.

In addition to Netflix, Paramount Skydance and Comcast were reportedly interested in buying at least part of WBD, though the talks have been a closely guarded secret. It’s not clear if the deal with Netflix could reshape potential offers or make the networks division more or less appealing to some potential buyers.