Netflix Acquires Warner Bros. for $82.7 Billion: What Does It Mean for Hollywood and Audiences?

Netflix's acquisition of Warner Bros. Discovery has an enterprise value of approximately $82.7 billion, with equity valued at $72.0 billion.

Netflix will also assume $10 billion of Warner Bros. debt, adding to the total financial burden of the transaction.

Through this acquisition, Netflix will gain full control of Warner Bros.' film and television studios, including the HBO Max streaming service and HBO premium channels.

This means that renowned franchises such as DC Universe, The Big Bang Theory, The Sopranos, and The Wizard of Oz will become part of Netflix's content library.

Financially, Netflix projects that this acquisition will generate annual cost savings of $2-3 billion in the third year following closing.

Furthermore, the deal is expected to increase GAAP earnings per share in the second year.

Despite unanimous approval by the Netflix and WBD Boards of Directors, the deal still has a long way to go before closing.

Donald Trump says he will be involved in the decision on whether Netflix should buy Warner Bros.“Netflix have a very big market share and when they have WB, that share goes up a lot. I don’t know that’s gonna be for some economist to tell, I’ll be involved in that decision too” pic.twitter.com/zCjC28p3JF

— DiscussingFilm (@DiscussingFilm) December 7, 2025

Netflix's acquisition of Warner Bros. is expected to create significant impact in Hollywood.

Hollywood unions and trade groups have voiced opposition, citing potential job losses and a negative impact on theatrical box office revenues.

With their combined streaming assets, Netflix and Warner would control approximately 30% of the US subscription streaming market.

This 30% figure is the critical threshold below which Department of Justice merger guidelines deem a deal between direct competitors anticompetitive.

In fact, President Donald Trump has stated that the deal "could be problematic" due to the large combined market share.

Netflix itself managed to win a fierce bidding war, beating out strong competitors like Paramount Skydance and Comcast.

However, the competition didn't stop there; Paramount Skydance then launched a hostile $108 billion takeover bid for all of Warner Bros. Discovery, challenging Netflix's deal.

Furthermore, this acquisition will also change the Hollywood real estate landscape.

Netflix will acquire major studio and production assets, including the iconic Warner Bros. Studios in Burbank, California, and Leavesden Studios in the UK.

New details on the Netflix and Warner Bros merger • Netflix boss Ted Sarandos met with Donald Trump in November — he left with the impression that Netflix wouldn’t face opposition from the White House in buying WB• Netflix argued that YouTube is a bigger entertainment… pic.twitter.com/gc8oSQrFtw

— Culture Crave 🍿 (@CultureCrave) December 7, 2025

For audiences, the Netflix acquisition of Warner Bros. promises a significant expansion of its content portfolio.

The merger will bring together popular Netflix original series like Stranger Things and Bridgerton with Warner Bros.'s historical and modern entertainment catalog.

This means Netflix members will have access to a much wider selection of high-quality titles, from critically acclaimed HBO dramas to blockbuster films.

Netflix stated that this combination will offer more choice and greater value for consumers, while creating new opportunities for the creative community.

By integrating HBO Max into the Netflix ecosystem, this acquisition also has the potential to reduce the "streaming fatigue" often experienced by consumers due to the sheer number of streaming services they must subscribe to.

However, not everyone sees this acquisition without concerns.

Some critics argue that this merger could negatively impact cinema and the cinema-going experience, as Netflix tends to prioritize direct-to-platform releases.

There are also concerns that consolidation of this magnitude could reduce competition and content diversity in the market, limiting choices for filmmakers and audiences.