Netflix is buying entertainment giant Warner Bros in a deal valued at around $82.7 billion.

The acquisition will see the streaming giant own the film and streaming business of Warner Bros Discovery, which – as of July 2025 – includes the company’s video games division.

As a result, if the deal is approved, Netflix will soon be the owner of developers Rocksteady, NetherRealm, Avalanche and TT Games.

In buying Warner Bros, the company has outbid both Comcast and Paramount Skydance. The news was formally announced today.

The deal is set to close after Warner Bros Discovery spins off Discovery Global into a new publicly-traded company. That is expected to occur in Q3 2026, meaning the sale would complete by September 30th, 2026.

“Our mission has always been to entertain the world,” Netflix co-CEO Ted Sarandos said.

“By combining Warner Bros.’ incredible library of shows and movies – from timeless classics like Casablanca and Citizen Kane to modern favourites 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.”

Warner Bros Discovery president and CEO David Zaslav added: “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. 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.”

Warner Bros Discovery was formed after WarnerMedia and Discovery merged in April 2022. In June 2024, it was reported that Zaslav were exploring breaking up the company, before officially announcing this move in December of last year.

The company’s video games business has struggled in recent years, with the outsized success of 2023’s Harry Potter Hogwarts Legacy being followed by the heavily loss-making Suicide Squad: Kill The Justice League. In November 2024, Warner Bros Discovery said the division was “substantially underperforming”, before long-time Warner Bros Games president David Haddad stepped down in January 2025.

The following month, the company closed developers Monolith Productions, Player First Games and Warner Bros San Diego, adding that these closures signal a “strategic change in direction”.

In June of this year, Warner Bros changed how its games arm was structured as it focused on its core IP: Harry Potter, Game of Thrones, Mortal Kombat and DC Comics.

Netflix itself already has a games business, though has made some studio and job cuts in this division in the last year. Most recently, the company sold back Spry Fox to its founders having bought the developer in November 2022.