Netflix Move on WBD Means Others Have to Scale Fast or Die Trying
At the start of 2025 Netflix set a target of achieving 430 million subscribers worldwide by 2030. The deal to acquire the streaming platforms not to mention content of Warner Bros. Studios means this is likely an underestimate in both deadline and sheer mass of consumers that now comes under its wing.
Netflix has confirmed it will officially acquire Warner Bros in a deal worth $82.7bn, under which Netflix will acquire Warner Bros, including its film and television studios, HBO Max and HBO, but not Discovery Global.
The combined streaming platforms of Netflix and HBO Max equals over 130m subscribers – double the next nearest rival, although there is significant overlap with the two subs bases,; calculates Ampere Analysis head of Media, Matt Trickett.
Whilst this may garner regulatory interest in the US in particular, it actually represents 25% market share of the domestic market unduplicated.
"Worldwide, the combined entity would have over 330m subs – so massive scale," Trickett says. "This would also have a knock-on effect for its potential to generate an advertising business at considerable scale also."
The cash and stock transaction is valued at $27.75 per WBD share with a total enterprise value of approximately $82.7bn (equity value of $72bn). The transaction is expected to close after the previously announced separation of WBD’s Global Networks division, Discovery Global, into a new publicly-traded company, which is now expected to be completed in Q3 2026.
"The primary rationale for the this titanic acquisition is buy into the rich set of IP the Warner Bros. Studio offers, as well as gaining access to a production engine room," says Trickett.
Key franchises that either could be revived or are being revived (Harry Potter a case in point) the DC Universe Superman / Batman franchise, Game of Thrones, and Friends among many others.
"Whilst Netflix has made in-roads building its own returnable IP and library, this is an area that takes years to build, and Netflix has potentially found an effective shortcut,: he suggests.
It is not fully confirmed if the international networks and streaming services of TNT/Eurosport come with the deal but if so, the analyst says it will offer Netflix key sports properties – namely English Premier League rights in the UK until 2029 and the summer and Winter Olympics until 2032. Netflix would have the ability to offer these as key events on its own platform or run them separately on preexisting platforms, he says.
Where does this leave everyone else, including Disney? Trickett says the challenge for the rest of the market is one of scale both in terms of streaming subscribers and programming.
Netflix, subject to regulatory approval, will have both, and this will probably trigger more consolidation activity going forwards among other players.
The transaction was unanimously approved by the boards of directors of both Netflix and WBD. In addition to the completion of the separation of Discovery Global, completion of the transaction is subject to required regulatory approvals, approval of WBD shareholders and other customary closing conditions. The transaction is expected to close in 12-18 months.
"Our mission has always been to entertain the world," said Ted Sarandos, co-CEO of Netflix. "By combining Warner Bros.’ incredible library of shows and movies—from timeless classics like Casablanca and Citizen Kane to modern favorites like Harry Potter and Friends—with our culture-defining titles like Stranger Things, KPop Demon Hunters, and Squid Game, we’ll be able to do that even better. Together, we can give audiences more of what they love and help define the next century of storytelling."
"This acquisition will improve our offering and accelerate our business for decades to come," continued Greg Peters, co-CEO of Netflix. "Warner Bros. has helped define entertainment for more than a century and continues to do so with phenomenal creative executives and production capabilities. With our global reach and proven business model, we can introduce a broader audience to the worlds they create—giving our members more options, attracting more fans to our best-in-class streaming service, strengthening the entire entertainment industry and creating more value for shareholders."
"Today’s announcement combines two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most," said David Zaslav, President and CEO of WBD. "For more than a century, Warner Bros. has thrilled audiences, captured the world’s attention, and shaped our culture. By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come."
The statement also said the acquisition will "enhance Netflix’s studio capabilities, allowing the Company to significantly expand US production capacity and continue to grow investment in original content over the long term which will create jobs and strengthen the entertainment industry" while adding "deep film and TV libraries for consumers." It also noted: "The Company also expects to realize at least $2-3bn of cost savings per year by the third year."
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