Netflix Buys HBO, DC, and All of Hollywood History for $82.7 BILLION

The streaming wars are officially over. Netflix is acquiring Warner Bros. Discovery's studio and streaming assets, creating a global entertainment behemoth with full control over legendary franchises like Game of Thrones, Harry Potter, and the DC Universe.

The Colossal Transaction: $82.7 Billion Enterprise Value

Netflix has entered into a definitive agreement to acquire the film and television studios, HBO, and the HBO Max streaming service from Warner Bros. Discovery (WBD).

The transaction is valued at an astonishing $82.7 billion enterprise value (with an equity value of $72.0 billion), positioning it as one of the largest media mergers in history. The deal is a cash-and-stock transaction, where WBD shareholders will receive $23.25 in cash and $4.50 in Netflix stock per share.

• The Funding: To finance the massive cash component of the deal, Netflix has secured a record-setting $59 billion senior unsecured bridge loan from major financial institutions, underscoring the scale and complexity of the deal.
• What is NOT Included: The deal is structured to exclude WBD’s legacy cable networks, such as CNN, TBS, and Discovery-branded channels. These assets will be spun off into a new publicly traded company, Discovery Global, before the acquisition closes.

Why the Deal is Transformative

The acquisition fundamentally reshapes the global entertainment landscape, addressing Netflix's one historical weakness: heritage and deep Intellectual Property (IP).

• The Library Conquest: Netflix instantly gains full, permanent control over a century of Hollywood history. This includes:
  • Premium TV: HBO shows (Succession, The Sopranos, Game of Thrones, The White Lotus).
  • Iconic Franchises: Harry Potter, the DC Universe (Batman, Superman), The Lord of the Rings (via New Line), and classics like Casablanca.
  • Studio Power: Full ownership of the Warner Bros. film and TV studios.
• The Scale: The merger combines Netflix's 300+ million global subscribers with HBO Max’s premium user base, creating an entertainment colossus with unprecedented reach and leverage.

The Future of HBO Max and Theatrical Releases

The immediate integration plans are crucial for both consumers and the film industry:

1. Streaming Consolidation: While a final branding decision is pending, analysts anticipate that HBO Max programming will be folded into Netflix's service offerings, potentially leading to bundle promotions or a single mega-streaming service. Netflix co-CEOs stated the merger will "optimize its plans for consumers" and could offer greater value.
2. Theatrical Promise: A key point of contention during the bidding process was the fate of theatrical releases. Netflix has assured regulators and cinema trade groups that it will honor Warner Bros.' existing commitments for wide cinematic releases. This marks a significant strategic shift for Netflix, which has historically prioritized its streaming window.

The Road Ahead: Antitrust and Timeline

The deal is expected to be finalized after the WBD networks spin-off is completed in the third quarter of 2026, with the full acquisition closing 12 to 18 months from the recent announcement.

However, the path to completion will be difficult. The acquisition is expected to face intense regulatory scrutiny from competition authorities in the US and Europe due to the sheer concentration of content and distribution power. Furthermore, groups representing theater owners have already publicly opposed the merger, warning of threats to theatrical diversity and market competition.

The combination of Netflix and Warner Bros. signals a decisive new era where vertically integrated tech giants control the creative pipeline from studio floor to consumer screen.