Netflix to acquire Warner Bros. for $82.7 billion after the separation of Discovery Global, combining iconic franchises, film and television libraries, and HBO properties with Netflix’s leading streaming service to offer more choice, more value and more opportunity across the entertainment industry.
In one of the biggest media moves in Hollywood history, Netflix and Warner Bros. Discovery have announced a definitive agreement that will see Netflix acquire Warner Bros. for a total enterprise value of approximately $82.7 billion. The cash and stock transaction, valued at $27.75 per WBD share, will take effect after the previously announced separation of Discovery Global, which is expected to be completed in Q3 2026.
The deal brings together two major forces in entertainment. Under the agreement, Netflix will acquire Warner Bros.’ film and television studios, HBO Max and HBO, uniting the company’s globally successful streaming platform with Warner Bros.’ iconic storytelling legacy.
The combined catalog is stacked with hit franchises and beloved classics. Warner Bros. properties including The Big Bang Theory, The Sopranos, Game of Thrones, The Wizard of Oz and the DC Universe will join Netflix’s lineup of audience favorites like Wednesday, Money Heist, Bridgerton, Adolescence and Extraction. It creates a massive entertainment library that spans generations, genres, and some of the most recognizable titles in culture.
“Our mission has always been to entertain the world,” said Netflix co-CEO Ted Sarandos. He highlighted how the merger blends memorable films such as Casablanca and Citizen Kane with modern favorites including Harry Potter and Friends, alongside Netflix originals like Stranger Things, KPop Demon Hunters and Squid Game. Sarandos added, “Together, we can give audiences more of what they love and help define the next century of storytelling.”
Netflix co-CEO Greg Peters called the acquisition transformational, noting that Warner Bros. has shaped entertainment “for more than a century.” He emphasized that Netflix’s global reach will introduce these worlds to even more fans, offering “more options, attracting more fans to our best-in-class streaming service, strengthening the entire entertainment industry and creating more value for shareholders.”
Warner Bros. Discovery President and CEO David Zaslav echoed the sentiment, calling the partnership a moment where “two of the greatest storytelling companies in the world” will reach more people than ever. “By coming together with Netflix,” Zaslav said, “we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come.”
Netflix plans to maintain Warner Bros.’ current operations, including theatrical releases for films. The company expects the combination to offer more choice and greater value for consumers, strengthen the industry, and generate significant shareholder benefits. Netflix projects $2-3 billion in cost savings per year by the third year, and expects the deal to be accretive to GAAP earnings per share by year two.
As part of the transaction, each WBD shareholder will receive $23.25 in cash and $4.50 in Netflix stock per share, subject to a collar based on the 15-day volume weighted average price of Netflix stock prior to closing. The transaction has been unanimously approved by both companies’ Boards of Directors and is expected to close in 12-18 months, following regulatory approvals and the completion of the Discovery Global separation.
Financial advisors on the deal include Moelis & Company LLC, Wells Fargo, BNP, HSBC, Allen & Company, J.P. Morgan and Evercore, with legal counsel provided by Skadden, Arps, Slate, Meagher & Flom LLP, Wachtell Lipton Rosen & Katz, Debevoise & Plimpton LLP and others.
When complete, Netflix will control a historic catalog of franchises and a century of storytelling power — strengthening the company’s reach, increasing opportunities for creators, and opening the door to a new era in entertainment.
