Netflix announced on Friday that it planned to buy Warner Bros. Discovery in an $82.7 billion deal that could redefine Hollywood and the broader media landscape.
Bringing the century-old Hollywood studio under Netflix’s umbrella would give the world’s largest paid streaming service expansive power over theater owners and entertainment-industry unions. It would also give Netflix access to more content and valuable entertainment brands like Harry Potter and Batman. Here’s what you need to know:
Who else was part of the bidding war over Warner Bros. Discovery?
The entertainment conglomerates Paramount and Comcast were also bidders in the sale. Notably, Netflix, which built its business on at-home entertainment, pledged to continue theatrical releases for movies from Warner Bros. Discovery.
What’s in it for Netflix?
Netflix has never tried an acquisition of this size. But as competition for people’s attention intensifies, the deal is expected to help it “attract and retain more subscribers,” Spencer Neumann, Netflix’s chief financial officer, said on a conference call with analysts on Friday.
In a fast-paced media landscape where consumers have endless choices on how spend their time, Ted Sarandos, Netflix’s co-chief executive, said the company “can’t stand still.”
“We need to keep innovating and investing in stories that matter most to audiences, and that’s what this deal is all about,” Mr. Sarandos said on the call on Friday. “The combination of Netflix and Warner Bros. creates a better Netflix for the long run.”
Does this mean Warner Bros. movies won’t appear in theaters?
Netflix says no. On Friday, the streaming giant said it planned to “maintain Warner Bros.’ current operations and build on its strengths, including theatrical releases for films.” Maintaining that operation would mean showing some 15 movies a year in theaters.
But there are doubts from the TV and film industry. A group of film producers sent a letter to Congress on Thursday stating that they had “grave concerns” about Netflix’s buying Warner Bros. Discovery. The authors of the letter did not sign their names for “fear of retaliation.”
“Netflix views any time spent watching a movie in a theater as time not spent on their platform,” the letter said. “They have no incentive to support theatrical exhibition, and they have every incentive to kill it.”
What is Warner Bros. Discovery known for?
Through this deal, Netflix would gain control of intellectual property like Looney Tunes and enormous film franchises such as Harry Potter, Superman and Batman.
The Hollywood studio also has an acclaimed collection of classic films such as “Casablanca,” “The Maltese Falcon,” “Bonnie and Clyde,” “Dirty Harry,” “The Shining” and “Chariots of Fire.” It also holds MGM classics like “The Wizard of Oz” and “Gone With the Wind.”
What does this mean for HBO Max?
Warner Bros. Discovery owns HBO, and if the deal goes through, Netflix’s roster of shows will expand greatly. Those hits include television shows such as “Friends” and “Game of Thrones” as well as streaming hits like “Euphoria,” “The Gilded Age” and “The White Lotus.”
Netflix’s co-chief executive Greg Peters said in a conference call that it was “quite early,” and he did not share exact details on how the HBO Max streaming service would be presented to consumers in the long term. In the near term, though, the plan is for HBO and HBO Max to operate as a stand-alone brand.
What other brands are affected?
In addition to HBO Max, the deal would give Netflix control of Warner Bros. studios. Other cable television brands owned by Warner Bros. Discovery are not immediately affected by the deal.
CNN would be spun off into a separate publicly traded company, by next year, alongside other mainstay cable networks like TNT, Discovery, HGTV and the Food Network. Gunnar Wiedenfels, the chief financial officer of Warner Bros. Discovery, would lead the new company, to be called Discovery Global.
Will antitrust regulators react?
The fate of the deal is in the hands of federal regulators and will depend on how the Trump administration defines the market these companies control.
Experts say the deal is also expected to face scrutiny from antitrust regulators in Europe.
If it fails to get approved, Netflix will be required to pay Warner Bros. Discovery a $5.8 billion breakup fee, according to documents filed with federal regulators.
The Netflix deal also contains a provision that prevents Warner Bros. Discovery from seeking higher bids from Comcast and Paramount. But if Warner Bros. Discovery decides to cut ties with Netflix and go with another bid, it will pay the streaming giant $2.8 billion, according to the documents.
Natallie Rocha is a San Francisco-based technology reporter and a member of the 2025-26 Times Fellowship class, a program for early-career journalists.
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