Netflix emerges victorious in competition for Warner Bros as HBO becomes part of streaming giant's empire

Netflix confirmed on Friday that it has finalized its acquisition of Warner Bros Discovery, encompassing the studios film and television divisions, as well as HBO and HBO Max. The deal concludes a months-long competitive bidding process that included industry heavyweights such as Paramount and Comcast.

The streaming platform announced the staggering $82.7 billion (71 billion) agreement, describing it as a merger of two leading storytellers in the world, aimed at bringing audiences even more of the entertainment they love, according to Warner Bros CEO David Zaslav.

The statement emphasized that the acquisition unites Netflixs technological innovation, global reach, and top-tier streaming service with Warner Bros century-long tradition of storytelling excellence.

As a result of the deal, HBOs programming, including Last Week Tonight and its late-night and comedy shows, will now fall under Netflix. However, both companies plan to maintain Warner Bros operations as they currently stand during the initial phase post-acquisition.

Restructuring Warner Bros Discovery

Earlier this year, Warner Bros Discovery considered which of its key assets to sell. In June, the company announced plans to split into two publicly traded entities: one focused on streaming and studioscovering Warner Bros, HBO, HBO Max, and its film and television libraryand another, Discovery Global, managing CNN, TNT Sports, Discovery channels, Discovery+, and Bleacher Report. This meant buyers could acquire the studio and streaming assets, while the legacy cable networks would remain separate.

Paramount, supported by Skydance, was reportedly among potential buyers, making several cash offers that were ultimately rejected. The fate of HBO specifically was uncertain until Netflixs agreement made the inclusion of the brand explicit.

Under the new arrangement, Discovery Global will be spun off as an independent entity, while Netflix will acquire the entire Warner Bros unit, including HBO and HBO Max. Netflix noted that the separation of the cable networks business is expected to finalize in Q3 2026, ahead of the transactions closing.

Regulatory Approvals Ahead

Although both boards have approved the acquisition, it still requires regulatory clearance in the US and abroad, as well as a shareholder vote at Warner Bros. Authorities are expected to review whether combining Netflix with HBO Max and Warner Bros studio assets could result in excessive control over premium film, TV, and licensing markets. The regulatory process may extend the final closure by 12 to 18 months.

Author: Maya Henderson