M&A
December 5, 2025
4 minutes read

Netflix Strikes $83B Takeover Deal For Warner Bros.

Movie streaming giant Netflix (NASDAQ: NFLX) has struck an outsized deal to acquire film and television powerhouse Warner Bros. Discovery…

Movie streaming giant Netflix (NASDAQ: NFLX) has struck an outsized deal to acquire film and television powerhouse Warner Bros. Discovery (NASDAQ: WBD). Netflix will pay $72bn in cash and stock to acquire Warner Bros. It’ll also assume Warner Bros.’ liabilities, pushing up the deal’s value to $82.7bn.

Netflix is the most popular online video streaming platform, with over 300 million paid subscribers. Warner Bros. produces a vast array of film and television content, known for iconic titles like Joker and Barbie. It owns the HBO television channel and the HBO Max streaming service.

Netflix topped a reported $60bn bid by Paramount Skydance, the media giant run by David Ellison, heir to tech tycoon Larry Ellison. The Ellison duo acquired Paramount in an $8bn deal that closed in August 2025. David Ellison founded movie production company Skydance in 2006, before merging it with Paramount this August.

During the bidding war, Paramount Skydance sweetened its breakup fee (to be paid to Warner Bros. if the deal falls through) to $5bn. However, Warner Bros.’ board was more receptive to Netflix’s offer.

An $83bn deal is one of the largest media industry deals ever, and the largest acquisition announced in 2025. However, closing the deal is another matter. Antitrust agencies could heavily scrutinize the deal and block it. If permitted, the deal will take at least a year to be completed.

The deal itself feels like a plot twist for Netflix. The streaming giant has shied away from outsized acquisitions throughout its history, preferring to invest billions in producing original scripted content. A deal for Warner Bros. would also invite major scrutiny from regulators in the U.S. and Europe, but Netflix feels confident enough to move forward. “I know some of you are surprised that we’re making this acquisition – and I certainly understand why…” Netflix co-CEO Ted Sarandos acknowledged on a call with investors.