Netflix has officially struck a deal to acquire Warner Bros. in a landmark industry-changing mega-deal valued at $82.7 billion.

After winning the bidding war for Warner Bros. Discovery Inc. (WBD) earlier this week, Netflix executives officially announced on Friday that they have entered into a definitive agreement with WBD bosses to acquire Warner Bros., including its film and television studios, HBO Max and HBO.

Netflix, run by chairman Reed Hastings and co-CEOs Ted Sarandos and Greg Peters, have agreed to buy the famed studio in a massive deal that will alter the course of the entertainment business.

Amid concerns that the deal would damage the cinema industry, a representative for the streaming service said on Friday that they "expect to maintain Warner Bros.' current operations" and build on its strengths, including theatrical releases for films.

They also insisted that the consolidation will "strengthen the entertainment industry", create more opportunities for creatives and offer consumers more choice and greater value.

"Our mission has always been to entertain the world," Sarandos said in a statement. "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."

David Zaslav, CEO of Warner Bros. Discovery, 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."

The transaction is expected to close after WBD officials separate their Streaming & Studios and Global Networks divisions into two separate publicly traded companies around Q3 2026.