Netflix has finalized a transformative $72 billion deal to acquire Warner Bros. Discovery's film studios and its streaming platform, HBO Max, marking a pivotal shift in the global entertainment landscape.
- Netflix acquired Warner Bros. Studios and HBO Max for $72 billion in a closed deal completed December 3, 2025
- Deal includes film divisions: Warner Bros. Pictures, DC Films, New Line Cinema, and all HBO Max intellectual property
- Netflix will gain exclusive distribution rights to future Warner Bros. theatrical films for seven years
- Integration of HBO Max into Netflix’s platform scheduled for Q2 2026
- Acquisition financed via cash and debt; projected leverage ratio increases to 6.1x
- Expected revenue from combined operations to exceed $28 billion annually by 2028
The acquisition, announced in late November 2025 and completed on December 3, 2025, positions Netflix as the dominant player in both content production and distribution. The transaction includes Warner Bros. Pictures, DC Films, New Line Cinema, and the entirety of HBO Max’s library and original programming slate, including hit series such as 'The Last of Us' and 'Succession'. The $72 billion price tag represents one of the largest media mergers in history, reflecting Netflix’s strategic push to expand its proprietary content ecosystem. By integrating Warner Bros.’ production capabilities with its existing infrastructure, Netflix aims to reduce reliance on third-party studios and accelerate the development of high-budget franchises. The deal also grants Netflix exclusive rights to distribute future Warner Bros. theatrical releases via its streaming platform for a period of seven years. Financially, the acquisition is financed through a combination of cash reserves and new debt issuance, with Netflix reporting a projected short-term increase in leverage ratios from 4.8x to 6.1x. However, management forecasts that synergies and expanded subscriber growth—projected at 12% annually over the next three years—will offset the burden. Analysts estimate the combined entity could generate over $28 billion in annual revenue by 2028. The move reshapes competitive dynamics across the streaming sector. Disney and Amazon Prime Video face intensified pressure to scale their own content pipelines. Additionally, the integration of HBO Max into Netflix’s platform is set to launch in Q2 2026 under a unified branding strategy, merging over 12,000 hours of content into a single catalog. Industry observers note that the acquisition may trigger further consolidation among major media players.