Netflix closed a massive deal on December 5, 2025, acquiring Warner Bros.’ film and television studios, along with HBO and HBO Max, in a transaction valued at $82.7 billion in enterprise value ($72 billion in equity value).
With this purchase, Netflix now owns legendary franchises like Harry Potter, the DC Universe (including Batman and Superman), Game of Thrones, The Wizard of Oz, and classics like Casablanca.
The deal combines cash and stock at $27.75 per share of Warner Bros. Discovery (WBD) and will close after the linear networks division (Discovery Global) spins off into a separate company, expected in the third quarter of 2026.
Netflix beat out competitors like Paramount Skydance, which launched a hostile counteroffer of $108.4 billion that WBD’s board rejected, and Comcast.
Theatrical window shrinks to just 17 days
According to sources cited by Deadline, Netflix plans to give major Warner Bros. films only 17 days of exclusive theatrical time before moving them to streaming, a strategy that could “devastate the cinema business” by drastically cutting the standard 45-day window that chains like AMC demand.
This would directly impact future releases from franchises like Harry Potter, DC, and new HBO productions.
Co-CEO Ted Sarandos stated they’ll maintain theatrical releases and honor current commitments, but that the theatrical window will “evolve to be more audience-friendly”. Exhibitors and figures like James Cameron have criticized the potential impact on the traditional cinematic experience.
What this means for the industry
This acquisition reshapes the entire streaming and entertainment landscape. Netflix gains instant access to Warner’s century-old film library, premium television content, and some of the most valuable IP in the world.
The move also positions Netflix as a direct competitor to traditional studios with theatrical distribution infrastructure, though with a model that prioritizes rapid streaming availability over prolonged cinema runs.
The shortened theatrical window represents a seismic shift for an industry still recovering from pandemic-era disruptions.
While streamers argue audiences want faster access to content at home, theater owners warn this could eliminate the communal viewing experience that’s defined cinema for over a century.
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