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Netflix and Warner Bros. Discovery have reached a definitive agreement under which Netflix will acquire the Warner Bros. film and television studios, HBO, and the HBO Max streaming service. The transaction values Warner Bros. Discovery shares at 27.75 dollars each, representing a total enterprise value of approximately 82.7 billion dollars and an equity value of about 72 billion dollars. The deal is structured to close after the previously announced spin off of Warner Bros. Discovery’s Global Networks division, to be renamed Discovery Global, into a separate publicly traded company expected in the third quarter of 2026.
The acquisition unites Netflix’s dominant global streaming platform and original content engine with Warner Bros.’ century old legacy of storytelling and some of the most valuable entertainment franchises in history. Iconic properties such as Game of Thrones, the DC Universe, The Wizard of Oz, The Big Bang Theory, Friends, and the entire HBO library will join Netflix originals including Stranger Things, Bridgerton, Squid Game, and Money Heist, dramatically expanding the depth and breadth of content available to subscribers worldwide.
Netflix co-chief executives Ted Sarandos and Greg Peters described the combination as a transformative moment for global entertainment, stating that bringing together Warner Bros.’ world class studios, production infrastructure, and intellectual property with Netflix’s technology and reach will deliver more choice to audiences, create new opportunities for creators and talent, and drive significant long term value for shareholders.
Warner Bros. Discovery chief executive David Zaslav said the merger ensures that the company’s treasured stories and characters will continue to reach audiences around the world through the industry’s leading streaming platform, while preserving Warner Bros.’ theatrical film business and creative independence.
The companies expect the deal to benefit consumers through richer content offerings, support thousands of new jobs through expanded U.S. production investment, and strengthen the overall entertainment ecosystem. Netflix has committed to maintaining and growing Warner Bros.’ studio operations and continuing its tradition of major theatrical releases.
Warner Bros. Discovery shareholders will receive 23.25 dollars in cash plus 4.50 dollars in Netflix stock for each share they own, with the stock portion protected by a collar mechanism tied to Netflix’s share price before closing. Netflix projects the merger will generate between two and three billion dollars in annual cost synergies by the third year and will increase GAAP earnings per share beginning in the second year after closing.
The boards of directors of both companies have unanimously approved the transaction. Closing remains subject to the successful separation of Discovery Global, regulatory approvals, approval by Warner Bros. Discovery shareholders, and other standard conditions. The companies anticipate completion within twelve to eighteen months.
