On Friday, Netflix took the next step toward becoming one of the most dominant forces in the global entertainment industry. announces its acquisition Warner Bros., HBO and its streaming business HBO Max. The $82.7 billion deal will see the entertainment giant acquire Warner Bros.' studio and streaming division. Discovery after the latter company announced earlier this year that it division into two parts. WBD is expected to spin off its Discovery business in the third quarter of 2026.
By acquiring Warner Bros., HBO and HBO Max, Netflix will not only expand its own catalog of shows and films, which already includes such popular series as Stranger Things, Wednesday and Squid Game, as well as Warner Bros. films. “Harry Potter,” “Friends” and “Batman,” but will also host HBO shows including “Game of Thrones” and “Legacies.”
“Our mission has always been to entertain the world,” said Netflix co-CEO Ted Sarandos. in the statement. He promised the deal would bring audiences “more of what they love and help define the next century of storytelling.”
Greg Peters, co-CEO of Netflix, praised the longevity and executive team of WBD, adding: “With our global reach and proven business model, we can introduce wider audiences to the worlds they create, providing our members with more options, attracting more fans to our best-in-class streaming service, strengthening the entire entertainment industry and creating greater value for shareholders.”
The big question for most Netflix subscribers will likely be how the acquisition might affect the monthly cost of the subscription. Netflix is our best choice of the many streaming services available to you, but one of the few downsides we note in our review is that the premium plans are already on the expensive end of the spectrum.
It's too early to tell what the impact on pricing might look like, but streaming services is getting more and more expensiveand this acquisition is unlikely to change that trend. While it's unclear whether Netflix plans to combine both streaming apps into one offering, the company said the agreement will allow it to “optimize its plans for consumers, enhancing the viewing experience and increasing access to content.”
The deal under which Warner Bros. Discovery, valued at about $72 billion after debt, was unanimously approved by the boards of directors of both companies. This is expected to allow Netflix to increase its production capacity for original games and invest in more original content. Netflix said it expects to retain Warner Bros. ongoing operations and still expects theatrical releases of films (such as Batman Part 2) to remain as usual.
What happens next if the deal clears any regulatory hurdles? “If this deal makes it through regulatory approval, Netflix will now cement itself as the Goliath of streaming services thanks to the combined weight of HBO Max and the content studios behind it all,” said Forrester Vice President and Research Director Mike Proulx. “This deal changes the calculus of the streaming wars, representing a seismic shift in the entertainment industry.”
