Netflix Buys Warner Bros. for $82.7 Billion—Is This the End of HBO Max as You Know It?

Netflix is set to buy Warner Bros. and HBO Max for $82.7 billion, a blockbuster deal poised to upend Hollywood and rewrite the streaming-versus-theatrical playbook.

Well, this is a swing. Reports say Netflix is buying Warner Bros. Discovery (yep, Warner Bros., HBO, and HBO Max) in a deal valued at $82.7 billion. If it closes as described, that would be one of the biggest entertainment mergers ever — and a massive reset for how movies and shows get made, released, and streamed.

The deal, in plain English

• Netflix is set to acquire Warner Bros., including the film and TV studios, plus HBO and HBO Max, for a total deal value of $82.7 billion.
• Equity value is pegged at $72 billion; the rest bridges to the headline number through assumed obligations and structure. Most of Netflix’s offer is reportedly cash, which helped seal it.
• Other bidders: Paramount Skydance (rejected multiple times for offers seen as too low) and Comcast (more cautious about adding debt).
• Per the terms described: each WBD shareholder would receive $27.75 per share — $23.25 in cash plus $4.50 in Netflix common stock. That’s $4.25 higher than Paramount Skydance’s final $23.50-per-share bid.

How we got here

After weeks of jockeying, Netflix emerged as the high bidder over Paramount Skydance and Comcast. Paramount Skydance kept coming back with bids that Warner Bros. rejected multiple times. Comcast hovered but didn’t want to overextend on debt. Netflix showed up with a mostly cash offer and, apparently, the right structure and timing.

On a call with analysts on Friday, via Variety, Netflix co-CEO Ted Sarandos acknowledged the surprise factor but said the plan is to keep Warner Bros. operating while building on its strengths. Translation: they want the library, the brands, the pipeline — and to plug them into Netflix’s global machine.

What Netflix would actually own

This is where the scale gets wild. Warner Bros. controls DC across films, animation, and TV — think the whole DCEU-to-DCU continuum from Zack Snyder’s era to James Gunn’s new slate. Add to that Harry Potter, The Sopranos, Chernobyl, Game of Thrones, Friends, Citizen Kane, and a ton more. If you’re wondering whether Netflix could start greenlighting spin-offs, revivals, reboots, and sequels across that catalog: yes. The upside is obvious. So is the risk of burning out beloved IP if they overdo it. Picking the right projects will matter — a lot — whether that’s a True Detective continuation, more Thrones universe plays, or something left blessedly untouched.

The bidding math

For the number-watchers: Paramount Skydance topped out at $23.50 per WBD share. Netflix’s $27.75 per share offer breaks down to $23.25 in cash plus $4.50 in Netflix stock. With the equity value set around $72 billion and a total deal value of $82.7 billion, this is designed to be both rich and fast — the kind of proposal that outmaneuvers rivals simply by being cleaner to close.

Theaters vs streaming: expect shorter windows

Netflix’s playbook on theatrical has never been subtle: limited runs to qualify for awards, then move to streaming as quickly as possible. The recent dust-up over the super-limited rollout of Netflix’s Frankenstein didn’t exactly calm nerves. Sarandos signaled where this is headed next:

"I think the windows will evolve to be much more consumer friendly, to be able to meet the audience where they are, quicker."

Read that as: shorter theatrical windows for Warner Bros. titles under Netflix’s umbrella, with the real goal being subscriber growth. That’s great for people who want movies at home immediately, and less great for the big-screen faithful who point to something like Top Gun: Maverick as proof that theaters still matter.

What happens to HBO Max

HBO Max has been one of Netflix’s fiercest competitors and has been growing. Under this setup, it could be folded under Netflix or otherwise integrated, shrinking the competitive field and giving Netflix a larger footprint to market across. Expect branding and product questions, but the gist is consolidation and less marketplace clutter — at least from Netflix’s perspective.

Backlash, nerves, and what the numbers people want

There’s already pushback around the dealmaking process, including critical letters and grumbling from rival camps. Analysts are spitballing compromises like a 60-day theatrical window before titles hit Netflix, but that’s up to executives. Some fear major movies could skip theaters entirely if the math favors streaming. The target on Netflix’s side, per the chatter, is to make the combined business accretive by the end of 2026.

There are also scale concerns: projections floating around peg the combined reach at roughly 450 million subscribers worldwide, with Netflix collecting the spoils. That is… a lot of leverage in one place.

So, what does it all mean?

If this closes as outlined, Netflix would become the single most powerful distributor in Hollywood, with a library that can feed streaming for years and a theatrical strategy that bends toward speed-to-home. The upside: fewer silos, clearer pipelines, and a deep bench of franchises. The downside: theaters get squeezed, and classic IP can take a beating if the sequel/reboot machine runs too hot.

Short version: it’s a seismic play with huge upside and equally huge ways to go sideways. Buckle up.