Netflix is set to acquire Warner Bros, along with its gaming division, in a deal valued at $82.7 billion
In a major move in the entertainment industry, Netflix has agreed to purchase Warner Bros for an estimated $82.7 billion. This acquisition will give Netflix control over Warner Bros Discovery's film and streaming assets, along with its video game division, effective July 2025.
Should this transaction receive the necessary approvals, Netflix will acquire game developers including Rocksteady, NetherRealm, Avalanche, and TT Games. Rivals Comcast and Paramount Skydance were also contenders for the acquisition but were surpassed by Netflix. This development has been officially announced by Netflix.
The completion of this deal is contingent upon Warner Bros Discovery spinning off Discovery Global into a separate publicly traded entity. This spin-off is expected to be finalized in the third quarter of 2026, specifically by September 30.
Ted Sarandos, Netflix's co-CEO, stated: "Our mission has always been to entertain the world. By joining forces with Warner Bros.' extensive library, we can enhance our offerings with both classic and contemporary favorites. Together, we aim to delight our audiences and shape the future of storytelling."
David Zaslav, president and CEO of Warner Bros Discovery, remarked: "This merger unites two powerhouse storytellers, ensuring that audiences around the world will continue to enjoy unparalleled entertainment. Warner Bros has a history of captivating audiences and influencing culture for over a hundred years, and joining Netflix promises to extend this legacy."
Warner Bros Discovery was created following the merger of WarnerMedia and Discovery in April 2022. In December 2024, Zaslav revealed plans to potentially disband the company, a consideration reported in June of that year.
Warner Bros' gaming division has faced challenges lately. Despite the phenomenal success of "Harry Potter Hogwarts Legacy" in 2023, the division incurred significant losses with "Suicide Squad: Kill The Justice League." In November 2024, Warner Bros Discovery highlighted the division's underperformance, and by January 2025, David Haddad, who had long led Warner Bros Games, announced his resignation.
Subsequently, in February 2025, Warner Bros closed down several game development studios, including Monolith Productions and Player First Games, indicating a strategic repositioning. By June 2025, the company restructured its gaming business, concentrating on key franchises such as Harry Potter, Game of Thrones, Mortal Kombat, and DC Comics.
Netflix, possessing its own gaming segment, has experienced similar adjustments by reducing staff and studios. Recently, Netflix divested Spry Fox back to its original founders after having acquired the studio in November 2022.