Following recent speculation about a potential merger between the streaming leader and the studio powerhouse, Netflix has confirmed its intent to acquire Warner Bros., HBO, and HBO Max in a transaction valued at around $82.7 billion. The acquisition is contingent on regulatory approval and will proceed once Warner Bros. completes its separation from legacy cable operations and Discovery holdings through a planned de-merger, expected in the third quarter of 2026, with the integration following thereafter.
Netflix's official release indicates plans to preserve Warner Bros.' existing business activities and its commitment to cinema releases for feature films. Over time, however, HBO Max could cease to operate independently, with Netflix highlighting the integration of extensive movie and television archives from HBO and HBO Max to expand viewing options for subscribers with premium content.
This merger positions Netflix as a dominant force in the international entertainment sector, merging its worldwide distribution network with iconic brands such as HBO, DC Studios, Cartoon Network, video game production units, Turner Classic Movies, and select portions of TNT excluding those linked to Discovery.
The proposed transaction is expected to encounter significant resistance from competing bidders and regulatory authorities. Paramount and Skydance, as reported by the Hollywood Reporter, described the negotiation process as biased. Considering the connections between Paramount's recent leadership and government officials, the merger will likely face intense examination, including concerns over the scale of the unified entity.
Since the news emerged, Engadget's lead correspondent Devindra Hardawar has consulted industry insiders, reviewed research, and gathered insights to address key uncertainties about the merger's impact on consumers. His analysis covers prospects for government clearance, film distribution in theaters, and the future of disc-based media. For full details, see his article 'The Netflix and Warner Bros. merger could benefit investors, yet disadvantage others.'
Update, December 5, 2025, 1:45 PM ET: This report now includes an additional section with a reference to our latest in-depth feature, offering expanded insights into the Netflix-Warner Bros. merger and its potential effects on digital streaming services, cinematic productions, television programming, and investor interests.