Netflix and Warner Bros. Discovery announced that they have entered into a definitive agreement for Netflix to acquire Warner Bros., including its film and television studios and the HBO and HBO Max businesses. The transaction values Warner Bros. Discovery at roughly 82.7 billion in enterprise value, with an equity value of 72.0 billion.
The agreement will take effect after the previously announced separation of Discovery Global, WBD’s Global Networks division, into a standalone publicly traded company. That separation is now expected to conclude in the third quarter of 2026. Once completed, the acquisition will consolidate the Warner Bros. studio system and HBO’s programming catalog under Netflix’s distribution and operational infrastructure.
According to the announced terms, each Warner Bros. Discovery (WBD) shareholder will receive $23.25 in cash and $4.50 in Netflix stock for every share of WBD they own. This compensation is subject to a collar linked to Netflix’s 15-day volume-weighted average price before the deal closes. If Netflix’s stock price falls below or rises above specific thresholds, the stock component will be adjusted accordingly. Both companies have stated that their boards of directors have unanimously approved the deal; however, it is still subject to shareholder approval, regulatory review, and other customary closing conditions.
Netflix co-CEOs Ted Sarandos and Greg Peters said the acquisition would expand the company’s content library and production capabilities, citing Warner Bros.’ century-long film and television legacy. They argued that the integration of Warner Bros.’ franchises with Netflix’s global streaming reach would broaden audience engagement and enhance the company’s long-term growth prospects. These claims reflect the companies’ strategic framing of the deal but cannot be independently verified at this stage.
WBD President and CEO David Zaslav described the agreement as a continuation of Warner Bros.’ historical role within the entertainment industry, emphasizing that the combined entity would make the studio’s catalog available to a wider global audience. WBD stated that Warner Bros.’ existing operations will remain in place following the acquisition.
The companies assert that the transaction will generate two to three billion dollars in cost savings by the third year after closing, projecting that the combined business will become accretive to Netflix’s earnings by year two.
Upon the completion of WBD’s separation, Discovery Global will retain ownership of the company’s television networks, sports assets, and digital properties, including CNN, TNT Sports, Discovery channels, Discovery Plus, and Bleacher Report.
If approved, the acquisition is expected to close within 12 to 18 months.
