Netflix Buys Warner Bros: Netflix has made a huge move that shocked Hollywood and Wall Street. The company announced that it will buy Warner Bros. Discovery for $82.7 billion. This includes HBO, HBO Max, and the famous Warner Bros. movie and TV studios. Netflix beat other big competitors like Skydance and Comcast.
The deal was announced on December 5, 2025. It is a mix of cash and Netflix stock. WBD shareholders will get $23.25 in cash and $4.50 in Netflix stock for each share.
This deal could turn Netflix from a streaming service into a giant media company. Netflix already has 300 million subscribers, and now it will also control huge franchises like Harry Potter, Game of Thrones, DC Comics, and more.
Netflix’s stock was around $103 on December 4. It fell slightly because of merger worries but is still up 20% this year. Warner Bros. Discovery’s stock rose about 2% to $24.50.
People are now debating many things:
• Will this cause antitrust problems?
• What does this mean for movie theaters?
• How valuable is Warner’s content library?
This simple guide explains the whole story—who is involved, why the bidding was intense, what Netflix now owns, and how the $59 billion loan supports the deal. If you are searching “Did Netflix buy Warner Bros?”, here is your answer: Yes, and it’s one of the biggest media deals ever.
Netflix Buys Warner Bros – Terms, Timeline, and What’s Included
Netflix’s deal to buy Warner Bros is a mix of cash and Netflix stock. It will happen after Warner Bros. Discovery spins off its cable TV channels like CNN and TNT into a new company called “Discovery Global” by Q3 2026.
The whole deal is worth $82.7 billion. This equals $27.75 per WBD share. Shareholders will get $23.25 in cash and $4.50 in Netflix stock. A special “collar” protects both sides if stock prices change too much.
Netflix also agreed to pay a huge $5.8 billion breakup fee if regulators block the deal. This shows Netflix is very confident even though the DOJ, FTC, and EU may challenge it.
What Netflix Gets
Netflix will receive:
• Warner Bros. Pictures, TV, Animation, and DC Studios
• HBO and HBO Max (soon called Max)
• Classic and modern hits like The Wizard of Oz, The Sopranos, Friends, The Big Bang Theory
• Major production studios around the world
What Netflix Does NOT Get
Netflix will not get the cable networks such as Discovery Channel and Eurosport. These will become part of the new “Discovery Global.”
When It Will Close
The deal is expected to close in Q3 2026, if approved by regulators. Netflix promises to keep Warner Bros movies in theaters until 2029, but some people fear Netflix may push more films straight to streaming.
What Subscribers Can Expect
If the deal passes, Netflix users may see HBO shows arriving on Netflix by late 2026. This could mean big crossovers and stronger original content—like Stranger Things meeting Game of Thrones–style storytelling.
The Bidding War: How Netflix Beat David Ellison’s Paramount and Comcast
The fight to buy Warner Bros. Discovery began quietly in September 2025. It grew fast when David Ellison, fresh from his $8 billion Skydance–Paramount deal, made surprise offers to buy all of WBD for $23.50 per share. He wanted to build a huge movie empire, helped by his father Larry Ellison’s massive Oracle fortune.
Ellison made three offers, and even said he would keep David Zaslav as co-CEO. But WBD rejected them and started a formal auction in October. This brought in Comcast and, unexpectedly, Netflix. Netflix had always said it preferred building, not buying — but then shocked everyone with a strong $28 per share, mostly cash offer.
Paramount was angry. They sent harsh letters claiming the process was unfair and too friendly to Netflix. They argued Ellison should have won, and pointed to politics, job talks, and EU rumors.
Netflix pushed back with a clear plan. Co-CEOs Ted Sarandos and Greg Peters said HBO’s top-quality shows would boost Netflix worldwide. They also said combining Warner’s $20 billion content budget with Netflix’s $17 billion originals budget could save $2–3 billion each year.
WBD CEO David Zaslav, who had struggled since the 2022 Discovery merger, backed Netflix. He said Netflix was the best home for “powerful stories.” The WBD board agreed — and voted for Netflix unanimously.
Netflix Stock (NFLX) and Warner Bros. Stock (WBD): Market Reaction and What Experts Expect
Netflix stock fell 2–3% before the market opened on December 5. It dropped to about $100.84, down from $103.22 the day before. Investors were worried because Netflix will issue new shares for the deal, and regulators might slow things down. Even with the dip, Netflix is still up 20% this year. The company is worth about $437 billion, and its forward P/E is 35.
Some analysts remain positive. Morningstar calls Netflix a “Buy” and gives it a $135 target, meaning a possible 30% rise. They believe Netflix will gain more subscribers after the deal—maybe reaching 400 million—and make more money from ads.
Warner Bros. Discovery stock jumped 2.28% to $24.71. This values the company at about $60 billion. It is a big recovery from its low of $7.52. Investors liked CEO David Zaslav’s move to sell, especially since WBD has more than $40 billion in debt. WBD’s P/E is very high at 131, but the new spin-off “Discovery Global” may help steady things. Experts think WBD could reach $28–$30 per share when the deal closes.
For the combined company, some predict strong gains. Bulls see Netflix hitting $140 by 2026, while bears warn the $59 billion loan used for the deal is risky.
Netflix and Warner Bros. Discovery: Company Basics and Who Owns Them
Netflix started in 1997. It was founded by Reed Hastings and Marc Randolph. It is a public company listed on NASDAQ as NFLX. No single person owns Netflix. Big investment companies own the largest shares. Vanguard owns about 8.5%, BlackRock owns about 6.8%, and Reed Hastings still owns about 1.5% through trusts.
Netflix is very large. Its market value is about $437 billion. It makes around $45 billion a year. It has 300 million subscribers in 190 countries. The company is led by Ted Sarandos and Greg Peters, who are co-CEOs. Netflix is known for big shows like Squid Game and Bridgerton.
Warner Bros. Discovery (WBD) was created in 2022 when AT&T spun off WarnerMedia and it merged with Discovery Inc. It is also a public company on NASDAQ under WBD. Like Netflix, it has big investors such as Vanguard and BlackRock, each owning around 7%. The company is led by CEO David Zaslav.
WBD is worth about $60 billion. It is trying to shift from old cable TV to streaming. Who owns HBO? WBD owns HBO completely. HBO started in 1965 and is now WBD’s most famous brand. Who owns HBO Max? Also WBD. HBO Max (now just Max) mixes HBO shows with Discovery+ content and has around 95–100 million subscribers worldwide.
What Does Warner Bros Own? A Huge Collection of Movies, Shows, and Games Now Moving to Netflix
After the deal, Netflix will get control of almost all of Warner Bros’ biggest brands and studios. This includes Warner Bros. Pictures, TV, and Animation, which made movies like Barbie, Dune, and The Matrix.
Netflix will also get DC Studios, which owns Batman, Superman, Wonder Woman, and the whole DC universe. New Line Cinema is part of the package too, known for The Lord of the Rings and The Hobbit.
From the TV side, Netflix will take over HBO, which is home to hit shows like Succession, The Last of Us, and Euphoria. Netflix will also gain the HBO Max/Max streaming library.
In gaming, Netflix will get Warner Bros. Games, the studio behind Mortal Kombat and Hogwarts Legacy. It will also control Warner’s huge consumer products and licensing business—things like toys, merchandise, and brand deals. Plus, it will gain global production teams such as Warner Bros. International Television Production.
Does Warner Bros own HBO?
Yes. HBO has been fully owned by Warner Bros. Discovery since 2022. HBO Max (now called Max) is also part of WBD.
What is not included? CNN, TNT, TBS, Discovery Channel, Eurosport, and about 50 cable networks will be spun off into a separate company.
With this giant collection of IP joining Netflix, experts believe Netflix’s value—already $437 billion—could move closer to $500 billion in the future.
The $59 Billion Loan: How Netflix Is Paying for the Warner Bros Deal
Netflix is using a very large loan to help pay for the merger. It has taken a $59 billion bridge loan from JPMorgan, Bank of America, and Citigroup. A bridge loan is short-term money that companies use until they can get long-term financing.
Netflix needs this loan mainly to cover the $53 billion cash it must pay to Warner Bros. Discovery shareholders.
Later, Netflix will replace this loan with bonds or new stock sales. The banks agreed because Netflix expects to save $2–3 billion every year by combining operations with Warner Bros.
Netflix has a strong AAA credit rating, so the loan comes with relatively low interest rates—around 3–4%.
But there is a downside. Netflix plans to issue 200 million new shares, which is about 10% more stock. This dilutes current shareholders, so the stock dropped around 2%.
Netflix’s CFO, Spencer Neumann, told investors not to worry. He said the deal will “help our business for decades,” thanks to HBO’s 100 million subscribers and Warner Bros’ massive library of movies, shows, and franchises.
Ted Sarandos and David Zaslav: The Leaders Behind the Netflix–Warner Bros Deal
Ted Sarandos, Netflix’s co-CEO since 2020, played the biggest role in pushing this deal forward. He was known as someone who avoided buying big companies. But this time, he changed his strategy. He called the deal a “rare opportunity” that will help Netflix for many years.
Sarandos wants to bring HBO’s high-quality shows—like The White Lotus and Succession—into Netflix’s world, which already has global hits like Squid Game. His plan is simple: mix Netflix’s huge audience with Warner’s powerful franchises.
David Zaslav, CEO of Warner Bros. Discovery since 2022, handled the sale from the other side. WBD was struggling with $40 billion in debt, falling stock prices, and many cost-cutting controversies. Critics attacked his decisions, like cancelling the Batgirl movie.
But Zaslav believed Netflix was the best partner. He said Netflix was a “slam-dunk” match for Warner’s history of great stories. Selling the company also gives him a major personal payout—rumored to be over $100 million.
Together, Sarandos and Zaslav shaped one of the biggest media deals in history.
Netflix, HBO, and HBO Max: What It Means for Your Streaming Library
After the merger, Netflix and HBO will combine their content. This means Emmy-winning shows like Game of Thrones will join Netflix hits like Stranger Things. HBO Max’s 100 million subscribers will be added to Netflix’s 300 million, reaching about 400 million users globally.
Who owns HBO Max? Right now, it’s part of WBD. After the deal, Netflix will own it and plans to rebrand it as “Netflix Max” by 2027. The combined library will also offer ad-supported bundles for $15–$20 per month.
Netflix co-CEO Ted Sarandos says there will be no immediate changes. But merging the libraries will cut duplicate costs and could increase profit margins to 25%.
Latest Netflix News: Stock Moves, Subscribers, and the Warner Deal
Netflix just reported Q4 earnings, adding 277 million subscribers, beating the expected 270 million. The Warner Bros merger will boost Netflix content, raising the 2025 spending from $17B to $37B.
Fans can expect big shows like Dune 3 crossovers and White Lotus S4 from HBO to appear on Netflix by 2027.
Netflix stock (NFLX) has been volatile. It fell 6% on Dec 3 after co-founder Reed Hastings sold $40M in shares. Analysts still see a target price of $135.
Some worry about the $59B debt from the deal, but supporters say Netflix now has a huge IP library and a strong content advantage.
Potential Challenges: Antitrust, Theaters, and Debt
Netflix faces several hurdles. The DOJ and FTC are reviewing the deal. Netflix has 50% U.S. streaming share and HBO adds 20%, raising monopoly concerns. The EU is also probing bundling rules.
Theater owners worry Netflix will hurt box office sales. They fear Warner’s 2029 theatrical plans could be cut.
The $59B bridge loan finances the cash portion at 3-4% interest. But Netflix’s total debt jumps from $14B to $73B, risking credit rating cuts.
Unions and politicians are watching. Sen. Warren called it an “anti-monopoly nightmare.”
The Bigger Picture: Netflix, Warner Bros, and Hollywood
Netflix buying Warner Bros is real. It marks streaming’s rise over traditional TV. Netflix’s $437B market value grows with Warner’s $20B in content.
Warner Bros shareholders get a premium exit. Netflix stock could grow if regulators approve.
Ted Sarandos says, “Entertain the world.” But some worry about competition and market impact. Watch Q1 2026 filings for updates.
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