But the deal faces regulatory obstacles and fierce opposition within the industry
Illustration: Ariel Davis for PolygonNetflix has won the bidding war to acquire Warner Bros., beating out rival bids from Comcast (the owner of Universal) and Paramount. Netflix will pay $82.7 billion for the storied studio.
If the deal gets regulatory approval — a pretty big if — Netflix will take ownership of a vast treasure trove of IP, including the DC Universe and film and TV rights to Harry Potter, as well as HBO, the streaming service HBO Max, and Warner Bros. itself, a 102-year-old movie studio and theatrical distributor.
In a news release, Netflix said its winning bid offered $27.75 per share and the deal would close after Warner Bros. Discovery's TV networks (which Netflix doesn't want) are spun off into a separate company, which is expected to happen in the third quarter of 2026. According to reports in The Wrap, Variety, and other trade publications, Netflix also included a huge $5 billion break-up fee if the deal doesn't go ahead. Comcast also wanted to buy Warner Bros. and HBO, while Paramount had put in a bit for the entirety of Warner Bros. Discovery including its linear TV networks. Paramount had long been considered the front-runner, so Netflix winning out is a surprise — not least because Netflix itself has tended to shy away from big acquisitions in the past.
The news followed a day of drama, with Paramount openly blasting the WBD bidding process as its team sensed the deal slipping through their fingers. Paramount said the deal had been "tainted by management conflicts" and accused "certain members" of WBD management of putting "personal interests" first. "WBD appears to have abandoned the semblance and reality of a fair transaction process, thereby abdicating its duties to stockholders, and embarked on a myopic process with a predetermined outcome that favors a single bidder," the studio fumed.
A long road lies ahead for the deal. The merger will have to get approval from antitrust regulators in the face of strong opposition from politicians and the entertainment industry. The Directors Guild of America has already said the deal "raises significant concerns," while Variety reports that an anonymous cabal of Hollywood A-listers has written to Congress warning that a Netflix deal could "hold a noose around the theatrical marketplace" and put millions of jobs at risk.
One reason Paramount had been considered the most likely buyer for Warner Bros. Discovery is that its new owners, the Ellison family, have earned enough favor with the Trump administration to get their merger of Paramount with Skydance quickly approved earlier this year. The assumption was that they would also be able to get a Warner Bros. acquisition waved through. Netflix has no such advantage in Washington.
Hailing the deal, Ted Sarandos, co-CEO of Netflix, said, “Our mission has always been to entertain the world. By combining Warner Bros.’ incredible library of shows and movies — from timeless classics like Casablanca and Citizen Kane to modern favorites like Harry Potter and Friends — with our culture-defining titles like Stranger Things, KPop Demon Hunters and Squid Game, we'll be able to do that even better. Together, we can give audiences more of what they love and help define the next century of storytelling.”
Warner Bros. Discovery CEO David Zaslav chimed in: “Today’s announcement combines two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most. For more than a century, Warner Bros. has thrilled audiences, captured the world’s attention, and shaped our culture. By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come.”
It's been a strange year for Warner Bros. While it definitely had losses, including the shuttering of three gaming studios, one of which was bringing Wonder Woman into the gaming sphere, it also had a streak of success. From Sinners to Minecraft, Warner Bros. films have topped the charts, and have continued to do so throughout the majority of 2025.
But not enough to change the way the wind was blowing. Zaslav hung up the sale sign for Warner Bros. back in October to spark a bidding war for the company, and, as Deadline reported, got his wish when the first round of non-binding bids hit his desk on Nov. 20. We wonder if Warner Bros.' prospective new owners will change HBO Max's name a third time, just to keep us on our toes.
Regardless, a new era for Warner Bros. is here. Let's hope it will be one of stability this time around.
