Netflix, Inc. and Warner Bros. Discovery, Inc. (WBD) have reached a definitive agreement for Netflix to acquire Warner Bros., including its film and television studios, HBO Max, and HBO. The all-cash-and-stock deal values WBD at $27.75 per share, with a total enterprise value of approximately $82.7 billion and equity value of $72.0 billion.
The acquisition will follow the planned separation of WBD’s Global Networks division, Discovery Global, into a new publicly traded company, expected by Q3 2026.
By combining Netflix’s global streaming platform and innovation with Warner Bros.’ century-long legacy, the deal brings together some of the most beloved franchises and titles, including The Big Bang Theory, Game of Thrones, DC Universe, The Wizard of Oz, alongside Netflix originals like Wednesday, Money Heist, Bridgerton, and Extraction.
Ted Sarandos, co-CEO of Netflix, said: “By merging Warner Bros.’ legendary content with Netflix’s culture-defining titles, we will deliver even more entertainment to audiences worldwide and shape the next era of storytelling.”
Greg Peters, Netflix co-CEO, added: “Warner Bros. has defined entertainment for over a century. Combined with Netflix’s global reach, we can introduce these worlds to a larger audience, create more opportunities for creators, strengthen the entertainment industry, and deliver value to shareholders.”
David Zaslav, CEO of Warner Bros. Discovery, commented: “This union of two of the world’s leading storytelling companies ensures audiences everywhere can continue to enjoy the world’s most compelling stories for generations.”
Benefits for Consumers, Creators, and Shareholders
Expanded Choice: Netflix members will access Warner Bros.’ vast film and TV libraries, including HBO and HBO Max programming, offering more high-quality content than ever before.
Stronger Industry: The acquisition enhances Netflix’s studio capacity, increases U.S. production, and fuels long-term investment in original content, supporting jobs and the creative economy.
Creative Opportunities: Talent will benefit from access to beloved intellectual property and larger audiences, enabling new stories and collaborations.
Shareholder Value: Netflix expects to attract and retain more subscribers, generate higher engagement, and realize $2–3 billion in annual cost savings by year three, with earnings accretion by year two.
Transaction Details
Each WBD shareholder will receive $23.25 in cash and $4.50 in Netflix stock per share.
Stock allocation is subject to a collar based on Netflix’s 15-day volume weighted average price.
Deal completion depends on the Discovery Global separation, regulatory approvals, WBD shareholder approval, and other standard closing conditions.
Expected closing timeline: 12–18 months.
Financial advisors: Moelis & Company LLC (Netflix), Wells Fargo, BNP, HSBC; Allen & Company, J.P. Morgan, Evercore (WBD). Legal counsel: Skadden, Arps, Slate, Meagher & Flom LLP (Netflix), Wachtell Lipton, Rosen & Katz, Debevoise & Plimpton LLP (WBD).
This acquisition unites two entertainment powerhouses, promising audiences unmatched content variety, creative innovation, and strengthened industry growth.
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