Netflix to Acquire Warner Bros. Discovery in $82.7 Billion Deal
The merger will expand Netflix’s portfolio of series and films, joining its original content like Stranger Things, Bridgerton, and Money Heist with Warner Bros.’ historic and modern entertainment catalog.
Netflix, Inc. and Warner Bros. Discovery, Inc. (WBD) have announced a definitive agreement under which Netflix will acquire Warner Bros., including its film and television studios, HBO Max, and HBO. The transaction, valued at $27.75 per WBD share, represents a total enterprise value of approximately $82.7 billion and an equity value of roughly $72.0 billion. The deal is expected to close following the previously announced separation of WBD’s Global Networks division, Discovery Global, into a new publicly traded company, anticipated in Q3 2026.
The acquisition combines Netflix’s global streaming reach and innovative platform with Warner Bros.’ century-long legacy of iconic content and franchises, including The Big Bang Theory, Game of Thrones, The Wizard of Oz, the DC Universe, and HBO’s extensive library. The merger will expand Netflix’s portfolio of series and films, joining its original content like Stranger Things, Bridgerton, and Money Heist with Warner Bros.’ historic and modern entertainment catalog.
Netflix co-CEOs Ted Sarandos and Greg Peters emphasized that the deal will enhance entertainment offerings for global audiences, strengthen the creative community, and expand opportunities for talent. They highlighted that combining Warner Bros.’ studios, production capabilities, and franchises with Netflix’s platform will offer more content choice, attract new audiences, and create long-term value for shareholders.
Warner Bros. Discovery CEO David Zaslav noted that the merger brings together two of the world’s leading storytelling companies, ensuring that audiences worldwide can continue enjoying beloved and culturally significant content. The acquisition aims to maintain Warner Bros.’ operations, including theatrical film releases, while integrating HBO and HBO Max into Netflix’s streaming ecosystem.
The merger is expected to benefit consumers, creators, and the industry. Netflix plans to significantly expand U.S. production capacity, invest in original content, create new job opportunities, and strengthen the entertainment industry. Additionally, the combined company will provide more opportunities for creative professionals to work with globally recognized intellectual properties and reach broader audiences.
Financially, WBD shareholders will receive $23.25 in cash and $4.50 in Netflix stock per share, subject to a stock collar based on Netflix’s volume-weighted average stock price prior to closing. Netflix expects the transaction to generate $2–3 billion in annual cost savings by the third year and to be accretive to GAAP earnings per share by year two.
The transaction received unanimous approval from both companies’ boards of directors. Completion is subject to the separation of Discovery Global, regulatory approvals, WBD shareholder approval, and customary closing conditions. The merger is expected to close within 12–18 months.
Financial advisors for the transaction include Moelis & Company for Netflix and Allen & Company, J.P. Morgan, and Evercore for WBD, with legal counsel provided by Skadden, Arps, Slate, Meagher & Flom LLP for Netflix and Wachtell Lipton, Rosen & Katz and Debevoise & Plimpton LLP for WBD. Committed debt financing is provided by Wells Fargo, BNP, and HSBC.
