Streaming Shakeup: Netflix Buys Warner Bros., Gaining Blockbuster IP and Cable Networks
Kenneth Lionel
Staff Writer
On December 5th, Netflix’s $82.7 billion acquisition of Warner Bros. was announced and is one of the biggest moves in the entertainment industry in years. The deal includes Warner Bros.’ film and television studios, HBO and HBO Max, and its vast library of movies and TV shows. With this acquisition, Netflix gains access to some of the most iconic franchises in Hollywood, including the DC Universe, Harry Potter, Game of Thrones, The Wizard of Oz, and The Sopranos. This is a huge expansion of Netflix’s content library and production capabilities.
Netflix is purchasing Warner Bros. for $72 billion, with a total enterprise value of $82.7 billion when including debt. Shareholders will receive $27.75 per share in cash and stock. The deal is contingent on Warner Bros. Discovery separating its linear TV and cable networks into a new publicly traded company, Discovery Global. This means channels like CNN, TNT Sports, and other cable and global networks will remain outside Netflix and will not be part of the acquisition.
Together, Netflix and Warner Bros. now reach roughly 450 million subscribers worldwide, which greatly expands Netflix’s market presence. This deal strengthens Netflix’s pipeline for revenue growth, giving the company more content to offer during high-demand periods like the holiday season, when families stream movies and shows together. Netflix already holds a strong position in the market, and this acquisition solidifies its leadership.
This move also gives Netflix exclusive rights to premium intellectual property and Hollywood blockbusters while complementing its existing originals like Stranger Things. The acquisition allows Netflix to offer more choice and greater value to subscribers, including both classic hits and new releases, positioning the company as a dominant entertainment platform.
There are challenges, of course. Warner Bros. carries around $9 billion in debt and has experienced slower growth in streaming compared to Netflix. But the potential upside is significant. By combining Netflix’s global streaming platform with Warner Bros.’ content, Netflix gains the ability to attract more subscribers, produce high-quality content, and compete even more effectively in a crowded streaming market.
Overall, this acquisition is a clear signal of Netflix’s ambitions to not only lead in streaming but also to become a powerhouse in content production, controlling some of the most valuable IP in Hollywood. The deal is set to reshape the industry and marks a major milestone in Netflix’s growth strategy, as it expands its library, its global reach, and its influence over the future of entertainment.
Contact Kenneth at kenneth.lionel@student.shu.edu