Netflix has has confirmed its intent to buy Warner Bros. Discovery’s studio and streaming business, which includes HBO and the Warner Bros. movie studio, in a deal worth $82.7 billion.
The studio is being sold following several rounds of bidding in a process which also saw bids from Comcast, owners of Sky, Peacock and Universal Studios, and Paramount.
The deal will need regulatory approval in the US and other key markets but, if successful, would give Netflix ownership of major TV and film franchises such Superman, Batman, Harry Potter and Game Of Thrones.
It would also take ownership of WBD’s 50% share of the UK TNT Sports channels which are currently operated through a joint venture with BT.
Like Netflix, Comcast was only interested in buying the studio and streaming business, which is being formed as part of the recently announced demerger, while Paramount was seeking to take control of the entire business.
Netflix says its purchase is expected to close after the separation is completed in Q3 2026.
HBO Max, the WBD’s flagship streaming service, is currently expanding its global roll-out with launches in the UK, Germany and Italy all set for early next year. However Netflix has confirmed it’s planning on “adding the deep film and TV libraries and HBO and HBO Max programming” to its service.
It adds that it’ll “optimize its plans for consumers, enhancing viewing options and expanding access to content.”
“Our mission has always been to entertain the world,” said Ted Sarandos, co-CEO of Netflix.
“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.”
David Zaslav, President and CEO of Warner Bros. Discovery, said: “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.”
Historically Netflix has only given cinema runs to a small number of its original films, and even their time in cinemas has been limited compared to traditional studios.
In a statement the streamer said it “expects to maintain Warner Bros.’ current operations and build on its strengths, including theatrical releases for films.”
However Cinema United – which represents cinema owners – said the potential deal “poses an unprecedented threat to the global exhibition business.”
President and CEO Michael O’Leary added: “Cinema United stands ready to support industry changes that lead to increased movie production and give consumers more opportunities to enjoy a day at the local theatre.
“But Netflix’s stated business model does not support theatrical exhibition. In fact, it is the opposite.
“Regulators must look closely at the specifics of this proposed transaction and understand the negative impact it will have on consumers, exhibition and the entertainment industry.”
He went on to say: “Netflix success is television, not movies on the big screen. A true commitment to theatrical means a robust slate of movies with a meaningful period of theatrical exclusivity supported by marketing.
“Sporadic and truncated theatrical releases to meet awards criteria in a handful of theatres is not a commitment to exhibition.”