Netflix has agreed to acquire Warner Bros Discovery’s studio and streaming assets, including HBO and HBO Max, in a deal valued at $82.7bn enterprise value following a competitive bidding process. The transaction, announced 5 December, has an equity value of $72bn.

Under the agreement, each Warner Bros Discovery shareholder will receive $23.25 in cash and $4.50 in Netflix stock per share. The deal is expected to close in the third quarter of 2026, following the previously announced separation of Warner Bros Discovery’s Global Networks division into Discovery Global.

The acquisition brings together Netflix’s global streaming platform with Warner Bros’ catalogue, including franchises such as Harry Potter, DC, Game of Thrones, Friends and The Big Bang Theory. Netflix expects to maintain theatrical releases for films and anticipates $2bn to $3bn in annual cost savings by year three.

The deal has significant implications for advertisers. Netflix’s ad-supported tier, which reached 190 million monthly active viewers in November 2025, will gain access to HBO’s premium audience demographic. The combined platform could command higher advertising rates whilst offering more sophisticated audience targeting.

However, reduced competition may limit advertisers’ negotiating power, and questions remain about content exclusivity and whether rival streamers will face higher licensing costs. The transaction requires regulatory approval and a vote by Warner Bros Discovery shareholders.