After initial reporting from The Wrap revealed that Netflix had won the bidding war for Warner Bros., the streamer stepped in last December to confirm that it has a deal with the Warner Bros. board to acquire the home of HBO, DC Comics, and Bugs Bunny for $82.7 billion. The acquisition would put an end to merger attempts from the likes of Paramount and Comcast, but it's also far from a done deal.

According to Netflix, its acquisition of Warner Bros. will need to wait until at least Q3 2026, to allow room for the previously announced Warner Bros. and Discovery split to go through, as Netflix does not plan to buy the Discovery part of the business (including its cable channels). Additionally, the deal will need to go through regulatory approval. Given these roadblocks, the companies expect "to close in 12–18 months."

The news of the acquisition follows Warner Bros.' announcement in October that it was open to a sale, at least partially motivated by its planned split with Discovery.

What happens next isn't entirely clear. The Wrap reported that Netflix's deal with Warner Bros. includes a $5 billion breakup fee in case regulators block the deal, pointing to some anxiety from both companies. To that end, CNBC reported that "a senior [Trump] administration official" has said that the government is looking at the merger with "heavy skepticism," and The New York Post and the Wall Street Journal both reported that Paramount (which recently completed its own merger with Skydance Entertainment, led by Trump ally David Ellison) is currently warning the administration away from allowing the deal. To that end, the BBC reported that Trump said the merger "could be a problem," and Paramount itself has continued to try to stand in its way.

Here is what to know about the Netflix and Warner Bros. merger, and how it could affect you.

Is Paramount buying Warner Bros. now?

Paramount is not done bidding for Warner Bros., it seems. Since Netflix announced its deal to acquire Warner Bros., the company has taken multiple steps to try to seize not just the Warner Bros. studio, but the entirety of Warner Bros. Discovery instead. The fight to snatch the purchase away from Netflix started on Dec. 8th, when Paramount announced a $108.4 billion hostile takeover bid that would bypass the board and offer to buy Warner Bros. Discovery shares from shareholders at a premium. Notably, if accepted, the deal would include the whole of Warner Bros. Discovery, despite the upcoming split, which would also give Paramount access to cable networks like CNN and TBS. In its announcement for the deal, Paramount called out the Netflix purchase as facing a "challenging regulatory approval process," implying that it would better be able to negotiate with the administration.

This has caused some confusion about whether Warner Bros. would ditch Netflix as a buyer, but in the time since Paramount started its counterattack, that hasn't been the case. While WBD can't control what its shareholders do and don't sell, the company's board has advised shareholders against both Paramount's initial hostile takeover attempt and a later amended offer, stating that "is not in the best interests of WBD and its shareholders and does not meet the criteria of a 'Superior Proposal' under the terms of WBD’s merger agreement with Netflix, Inc." Netflix has also stated that it sides with the WBD board.

Specifically, while Paramount stresses that its purchase offer is "all-cash" and would buy shares at a higher price, WBD points out that it would also saddle the acquired company with a significant amount of debt and increase the risk of failing to close the merger.

In response, Paramount is now suing Warner Bros. Discovery, asking the court to share more details about the Netflix transaction and its valuation with WBD shareholders. In addition, the company says it plans to use the shares it already owns to nominate WBD board members friendly to a Paramount deal, as well as introduce a bylaw amendment that would require shareholder approval to split the company's cable TV business from its studio business. As the Netflix deal does not include the cable TV business, this could theoretically stop the merger.

However, all of this is still very one-sided. Warner Bros. Discovery has continually rejected Paramount's offers, even after the promise of a personal equity guarantee from Larry Ellison (father of Paramount CEO David Ellison), making it clear that Netflix is the preferred buyer. If the court sides with Paramount, it could give Paramount more information to influence shareholders with, but as of now, the company has little leverage or official support. That could change if it continues to throw more money at the problem, although Paramount did not actually up the amount it is willing to pay for shares in its amendment.

Additionally, as of the end of January, Netflix and Warner Bros. announced that the Netflix purchase offer will also now be all-cash, as opposed to the mixture of cash and stock it was before. The inclusion of the Warner Bros. board in this decision should help clear any doubts of desperation on Netflix's part, even as the move acknowledges Paramount hostile takeover attempt.

The decision whether to accept Paramount's terms or stick with the board is ultimately up to stockholders, but because Paramount has no official association with Warner Bros at this point, while the Netflix merger is currently planned to go through, the rest of this article will treat the Netflix purchase as the more likely outcome.

HBO Max probably isn't going away

Since Netflix's primary business is as a streaming app, the most obvious result of a Warner Bros. acquisition would probably be the shuttering of HBO Max, and the inclusion of its content into Netflix proper. However, it seems like we're more likely to see the company running both services simultaneously.

In its post announcing the merger, Netflix said it will "maintain Warner Bros.' current operations," and that HBO and HBO Max would be viewed as a "compelling, complementary offering" for its customers.

Whether that means Netflix subscribers will get complementary HBO subscriptions, or if they will simply be able to add HBO onto their plans as complemental "content," is unclear, although I would expect the latter interpretation to be the correct one. After all, Disney charges an additional fee for users who also want to subscribe to Hulu content, even as it's working on killing the standalone Hulu app. There would be little reason for Netflix to not follow suit.

This is backed up by another line further into Netflix's press release which states that, "[b]y adding the deep film and TV libraries and HBO and HBO Max programming, Netflix members will have even more high-quality titles from which to choose." That implies HBO is something you'll add to an existing subscription, rather than content that will just become part of a base Netflix subscription, with the company saying the acquisition "also allows Netflix to optimize its plans for consumers."

Some Warner Bros. shows might come to Netflix

Netflix already offers a small smattering of shows originally developed for either HBO or HBO Max, such as Sex and the City and Scavenger's Reign. This is due to pre-existing content sharing agreements, but it's possible Netflix may continue to offer some HBO content to its existing subscribers for free, even if it continues to operate HBO as a separate entity.

For instance, Netflix says in the merger announcement that "shows and movies such as The Big Bang Theory, The Sopranos, Game of Thrones, The Wizard of Oz and the DC Universe will join Netflix's extensive portfolio." While this is likely simply acknowledging acquired IP, I wouldn't be surprised to see some select shows hit Netflix from time to time, either to prop up sparse release schedules or to promote HBO subscriptions/add-ons.

Netflix co-CEO Greg Peters also says in the release that, "[w]ith our global reach and proven business model, we can introduce a broader audience to the worlds [Warner Bros.] create." He adds this would be an opportunity to attract, "more fans to our best-in-class streaming service."

Expect Netflix to ramp up U.S. production

While Netflix is most known to consumers as an app, its large selection of original content also means that it operates as a production studio. Netflix says that it will use the acquisition of Warner Bros. production side to "enhance Netflix's studio capabilities, allowing the Company to significantly expand U.S. production."

This means that viewers might expect to see more original Netflix content in the future, specifically more American-made shows in the vein of Stranger Things, alongside localized foreign programming like Squid Game.

Gamers need to pay attention too

Alongside its movie and streaming TV businesses, Netflix will also be acquiring Warner Bros. Games, a spokesperson confirmed to Game Developer. That means the company will now be responsible for publishing both licensed works, such as the Batman Arkham series, as well as gaming originals, like the Mortal Kombat series. Little is known about how Netflix will handle suddenly being in charge of these longstanding AAA series, but given the company's recent gaming ambitions and its promise to continue Warner Bros. operations as usual, it's likely these titles will continue in some capacity.

Netflix will also publish DC Comics

In addition to suddenly stepping into big-budget, AAA gaming, Netflix's acquisition of Warner Bros. also means it's getting control of DC Comics' print business alongside its film and TV businesses, as the publisher is wholly owned by Warner Bros. That's another big step for the company, although given that DC's print business serves largely as the foundation of lucrative IP such as Superman and Batman, it's likely Netflix will do its best to keep operations there as smooth as possible. However, readers might expect some Netflix and DC synergy, similar to when Marvel started publishing new Star Wars comics shortly after Disney acquired Lucasfilm. Batman visiting the Upside-Down from Stranger Things might be more likely than you'd think.

Don't expect Warner Bros. movies to go straight to streaming

Finally, while Netflix's past movie releases have often relied on direct-to-streaming drops complemented by just enough of a theatrical presence to qualify for awards, Netflix said in its release that it plans to continue distributing Warner Bros.-produced movies as usual, "including theatrical releases for films." The company initially warned that the exclusive theatrical window may shrink, although in a recent interview with the New York Times, Netflix's Ted Sarandos said it will continue to give Warner Bros. movies a 45-day theatrical exclusivity window, "largely like it is today."

That window might see movies come to Netflix and/or HBO Max a little over a month after premiering on the big screen, although it's possible they might make brief stints in premium, pay-per-view streaming first, like many titles do today.

In other words, The Batman 2 probably isn't going to get the KPop Demon Hunters treatment.

This article was updated 1/20/2026, adding additional information regarding Netflix's purchase offer for Warner Bros., and the estimated theatrical window for Warner Bros. movies should the Netflix acquisition go through.