Netflix is making its most aggressive move yet to secure long-term dominance in entertainment. On December 5, 2025, the company announced an agreement to acquire Warner Bros., including its studios, streaming operations and video-game arm, from Warner Bros. Discovery (WBD) in a blockbuster deal valued at roughly $83 billion.
The transaction would hand Netflix the keys to a treasure chest of brands: DC superheroes, the Wizarding World of Harry Potter, “Game of Thrones,” classic Warner Bros. films, and a powerful catalog of TV series. It would also bring Warner Bros. Games under Netflix’s umbrella, adding proven gaming hits like “Hogwarts Legacy,” which has already generated more than $1 billion in revenue, plus a pipeline of licensed and original titles.
Strategically, Netflix is betting on three pillars:
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Deeper streaming catalog: With Warner Bros. content, Netflix can bulk up its library with globally recognized IP, helping reduce churn and justify future price increases.
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Advertising growth: A richer slate of content strengthens Netflix’s ad-supported tier, which executives see as a major revenue lever over the next few years.
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Gaming as a second growth engine: After a shaky start for its in-house games strategy, Netflix gains studios, talent and franchises that can turn its app into a true cross-media platform spanning shows, movies and games
The deal, however, faces serious hurdles. Regulators in the US and Europe are likely to scrutinize the merger’s impact on competition in both streaming and gaming. Rival platforms and consumer advocates are already arguing that so much IP under one roof could limit choice and drive prices higher. If regulators demand divestitures—especially around gaming or certain franchises—Netflix’s strategic calculus could change.
For Warner Bros. Discovery, the sale is part of a broader restructuring plan announced earlier in 2025, which split the company into separate entities and allowed it to reduce debt while giving investors a clearer view of each business line.
If approved, the acquisition would mark a turning point in the streaming wars: instead of many mid-sized rivals battling for subscriptions, the market would tilt even more toward a few mega-platforms with deep content libraries, gaming ecosystems and advertising networks. For consumers, that likely means more big-budget crossovers and game-adaptation projects—think new Harry Potter series tied to in-app games—but also a new debate over media consolidation and creative diversity.