Netflix and Warner Bros Discovery (WBD) today announced that they have entered into a definitive agreement under which Netflix will acquire Warner Bros, including its film and television studios, HBO and HBO Max, in a cash-and-stock deal valued at USD 27.75 per WBD share.
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Agreement Between Netflix and WBD
The transaction reflects an equity value of approximately USD 72 billion and an enterprise value of about USD 82.7 billion. The acquisition is expected to close following the previously announced separation of WBD’s Global Networks division—Discovery Global—into a new publicly-traded company, now slated for completion in the third quarter of 2026.
The agreement brings together Netflix’s global streaming scale and technological infrastructure with Warner Bros’ century-long legacy of storytelling and franchises. Properties such as The Big Bang Theory, The Sopranos, Game of Thrones, The Wizard of Oz, and the DC Universe will join Netflix’s catalogue, alongside its original hits including Wednesday, Money Heist, and Bridgerton.
Executive Reactions to the Merger
Netflix executives said the combination will broaden its offering, deepen its library and enhance audience engagement worldwide.
“Our mission has always been to entertain the world,” said Ted Sarandos, co-CEO of Netflix. “By combining Warner Bros’ incredible library of shows and movies—from timeless classics like Casablanca and Citizen Kane to modern favorites 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.”
“This acquisition will improve our offering and accelerate our business for decades to come,” continued Greg Peters, co-CEO of Netflix. “Warner Bros. has helped define entertainment for more than a century and continues to do so with phenomenal creative executives and production capabilities. With our global reach and proven business model, we can introduce a broader audience to the worlds they create—giving our members more options, attracting more fans to our best-in-class streaming service, strengthening the entire entertainment industry and creating more value for shareholders.”
“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,” said David Zaslav, President and CEO of Warner Bros. Discovery. “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.”
Operational Plans and Future Strategy
Under the terms of the transaction, WBD shareholders will receive USD 23.25 in cash and USD 4.50 in Netflix stock for each WBD share at closing.
WBD’s Global Networks division—including CNN, TNT Sports in the US, Discovery, free-to-air channels across Europe, and digital services such as Discovery+ and Bleacher Report—will be spun off into a new publicly traded company, Discovery Global, prior to the transaction’s completion. In June 2025, WBD announced plans to separate its Streaming and Studios and Global Networks divisions into two separate publicly traded companies.
Warner Bros’ studios, HBO and HBO Max will transition to Netflix, which said it intends to maintain the studio’s existing operations, including theatrical releases.
Netflix expects the merger to generate USD 2 billion to USD 3 billion in annual cost savings by the third year and to be accretive to GAAP earnings per share by year two. According to the official release, the acquisition will expand opportunities for creators, strengthen the entertainment industry and deliver greater value for consumers and shareholders.
The boards of both companies unanimously approved the deal. Closing remains subject to regulatory approvals, WBD shareholder consent, completion of the Discovery Global spin-off and other customary conditions. Assuming approvals are secured, the transaction is expected to finalize within 12 to 18 months after the separation of Discovery Global.
