Netflix Buys Warner Bros. in an $83 Billion Hollywood Shake-Up

Netflix is acquiring Warner Bros. and its iconic entertainment assets, including HBO, in a roughly $83 billion deal, creating a media titan poised to dominate the streaming market.

• Stacking the content deck: The move folds Warner Bros.' century-long legacy and franchises like Harry Potter and DC Comics into Netflix's global streaming empire. Co-CEO Ted Sarandos said the goal is to "give audiences more of what they love," combining Netflix hits like Stranger Things with Warner's library.

• Some assembly required: The acquisition is structured in two parts: Warner Bros. Discovery will first spin off its linear networks like CNN and TNT into a standalone company. Only then can Netflix complete its purchase, a process expected to take 12 to 18 months.

• Reversal of fortune: In a major reversal of its foundational strategy, Netflix—the company that built its empire challenging the theatrical model—has committed to maintaining Warner Bros.' big-screen release pipeline.

If approved, the merger would create a single media company with unprecedented scale, combining the world's largest streaming service with one of its most storied content studios. The biggest hurdle remains antitrust regulators, who are all but guaranteed to give the deal a tough road.

The merger is creating ripples across the industry, with some analysts warning that HBO's creative culture could be "terribly exposed" inside Netflix. The deal also puts a squeeze on competing streamers who rely on Warner's content, while movie theater associations are calling the combination an "unprecedented threat" to their business.