NETFLIX'S BID FOR WARNER BROS.: AN ERA-DEFINING DEAL THAT HAS SENT SOCIAL MEDIA INTO A FRENZY

Netflix plans to maintain Warner Bros.' current operations and build on its theatrical release strengths. It promises that the combination will deliver more choice and greater value to consumers and create a stronger entertainment industry by expanding studio capacity and investing in original content.

- RUCHIRA TALAPATRA

On 5 December 2025 Netflix announced that it had reached a definitive agreement to acquire Warner Bros. Discovery (WBD) after WBD separated its global networks division into a separate company.

The proposed cash-and-stock transaction values WBD at about $27.75 per share, implying an equity value of roughly $72 billion and an enterprise value of $82.7 billion. WBD shareholders would receive $23.25 in cash and $4.50 in Netflix stock per share, subject to a collar based on Netflix's stock price. The deal needs regulatory approvals and is expected to close 12-18 months after WBD's planned separation of its networks division in Q3 2026.

The headline-making acquisition-by far the largest deal in Netflix's history-has sparked euphoria among investors, fear and anger among industry guilds and politicians, and wild speculation across social media. To understand why, it helps to look at what each company brings to the table, what the critics say, how the deal could reshape the streaming wars, and the broader cultural questions it raises about the nature of cinema and OTT platforms.

Since evolving from a DVD-by-mail service into a streaming powerhouse, Netflix has pursued a simple mission: "to entertain the world." Co-CEO Ted Sarandos said that combining Warner Bros.' libraries and franchises-ranging from classics like Casablanca and Citizen Kane to modern hits like Harry Potter, Friends, Stranger Things, and Squid Game-with Netflix's global streaming platform will allow the company "to do that even better". He believes the merger will enable Netflix to give audiences "more of what they love and help define the next century of storytelling". The deal would also bring in Warner's film and TV studios, the HBO Max streaming service and its premium channels HBO and HBO Max, allowing Netflix to bolster its content arsenal.