- Netflix agreed to purchase Warner Bros. in a $72 billion deal.
- Netflix will buy HBO Max and the Warner Bros. studio, but not WBD’s TV networks like CNN and TNT.
- Here is the memo Warner Bros. Discovery CEO David Zaslav sent to employees.
Netflix is buying Warner Bros. Discovery’s studio and streaming businesses in a seismic $72 billion deal that promises to shake up Hollywood.
The Netflix-WBD tie-up, which the companies announced on Friday morning, would be the industry’s largest since Disney bought 21st Century Fox for $71 billion in 2019. Netflix is planning to buy HBO Max and the top-performing Warner Bros. studio, but not WBD’s TV networks like CNN, TNT, and TBS.
Netflix must first secure regulatory approval from the US and foreign governments, which some media analysts say could be a challenge. If all goes as planned, the deal is set to close in 12 to 18 months, the companies said.
Netflix beat out Paramount Skydance and Comcast in a bidding war.
Since Netflix is only buying the Warner Bros. studio and HBO Max, the remaining TV assets that are seen as less valuable will be spun out, as WBD originally planned. WBD was formed in April 2022 after a merger between AT&T’s WarnerMedia and Discovery.
“In the coming days, we will establish an Integration Office, which will coordinate all planning with Netflix, consistent with regulatory requirements,” WBD CEO David Zaslav wrote in a note to employees on Friday. “Until the transaction closes, WBD and Netflix remain separate companies. It may be tempting to reach out directly to counterparts or former colleagues at Netflix, but it is essential that all interactions are managed through this office to ensure we meet every legal and regulatory obligation.”
Here’s the full memo that Zaslav sent employees on Friday morning:
This communication has been sent to everyone at WBD. Team, The Board of Directors of Warner Bros. Discovery (WBD) approved a transaction under which Warner Bros. will be acquired by Netflix, subject to regulatory approvals and closing conditions, including the completion of the separation of Discovery Global from WBD. As part of the structure, the Global Networks business will form a new standalone company, Discovery Global, with Gunnar Wiedenfels to serve as CEO once the new company separates from WBD, now expected to be completed in Q3 2026. This decision reflects the realities of an industry undergoing generational change – in how stories are financed, produced, distributed, and discovered – and recognizes the strong, transformed company we are today, the significant value we have created, and the resilience and attractiveness that now position us in a rapidly evolving marketplace. Over the past several months, the Board evaluated a full set of strategic paths. Their conclusion is that this structure – Warner Bros. joining Netflix, and Discovery Global becoming a focused standalone company – provides the strongest long-term foundation for both sets of businesses. As outlined in the announcement, the proposed combination of Warner Bros. and Netflix reflects complementary strengths, more choice and value for consumers, a stronger entertainment industry, increased opportunity for creative talent, and long-term value creation for shareholders. I know this announcement creates many questions about what’s next. For some, it brings clarity about direction. For others, it raises questions about what this means for their teams and their work. All of those reactions are understandable. A transaction of this nature naturally creates uncertainty, and not all answers will be available immediately. Some will be clarified in the coming days and weeks; others depend on regulatory processes and on work that cannot begin until separation or closing. People across WBD have navigated extraordinary change over the last three years, while building a company with real creative, journalistic, and commercial strength. That deserves to be acknowledged plainly. What we can say now, based on the direction set out today, is that this structure provides a clearer path forward for Warner Bros. within Netflix, and for Discovery Global as a standalone company. For both, the goal is to position their creative work, talent, and brands to navigate a market that is constantly evolving and increasingly global. What happens now Later today, we will hold a Global Town Hall to walk through what we know and what is still to be determined. Calendar invites will follow shortly after this email. Business Unit leaders will hold discussions specific to their areas in the coming days, so you can hear directly from your leader. Managers will also come together early next week so they have the context and support they need to guide their teams through the early stages of this transition. What happens next The path toward a separation of WBD into Warner Bros. and Discovery Global will shift. We will redirect work tied to the earlier, planned two-company operating model and focus instead on the steps required to enable this transaction. In the coming days, we will establish an Integration Office, which will coordinate all planning with Netflix, consistent with regulatory requirements. Until the transaction closes, WBD and Netflix remain separate companies. It may be tempting to reach out directly to counterparts or former colleagues at Netflix, but it is essential that all interactions are managed through this office to ensure we meet every legal and regulatory obligation. What this means for you We also recognize that many people are looking for more clarity about what to focus on, how to prioritize work, and what this means for their teams. Those details will become clearer over the next several weeks, as we move toward our 2026 goal-setting and operating plan alignment processes. As part of that, you will hear guidance from your Business Unit and functional leaders early in the new year, with expectations and priorities anchored to what we know at that point in the regulatory process. In the meantime, please continue to focus on the work needed to wrap up 2025, support year-end deliverables, and take the opportunity to rest and recharge over the holidays. We will continue to communicate regularly, and new information will be shared in One Insider and on the One website. And we will see you later today at the Global Town Hall. As we move through this next chapter, our aim is simple: handle decisions with care, communicate clearly about what we know, and make sure people have the information and support they need at each step. I know moments like this carry weight. And they can also mark the beginning of new possibilities. The work you bring to this company – and the way you have shown up for one another – has built something that others clearly see value in. That matters. And while I cannot predict every step ahead, I am confident in the strength of our brands, in the talent of our teams, and in the stories, journalism, and experiences we will continue to bring to audiences around the world. David
