Netflix has agreed to acquire Warner Bros. Discovery for $82.7 billion, combining Netflix’s streaming service with Warner Bros.’ film, TV, and HBO content. This acquisition expands Netflix’s content library, strengthens its global reach, and enhances its production capabilities. The transaction, expected to close in 12-18 months, will also create significant opportunities for the entertainment industry and talent.
In a significant move that reshapes the global entertainment landscape, Netflix, Inc. has entered into a definitive agreement to acquire Warner Bros. Discovery, Inc. The deal, valued at $82.7 billion (equity value of $72.0 billion), will bring together two iconic entertainment giants, with the potential to redefine the future of film, television, and streaming services. This landmark acquisition follows the separation of Warner Bros. Discovery’s Global Networks division, Discovery Global, which is set to become an independent publicly traded company by Q3 2026.
The deal marks a fusion of Netflix’s industry-leading streaming platform and Warner Bros.’ century-long legacy of world-class entertainment. By adding Warner Bros. studios, HBO, and HBO Max to its portfolio, Netflix aims to deliver even more compelling content to its global audience.
Ted Sarandos, co-CEO of Netflix, explains, “Our mission has always been to entertain the world. By combining Warner Bros.’ incredible library of shows and movies—from timeless classics like Casablanca and Citizen Kane to modern favourites 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.”
The expanded entertainment offering
Warner Bros. boasts a remarkable collection of beloved franchises, including The Big Bang Theory, The Sopranos, Game of Thrones, and the DC Universe, which will now complement Netflix’s successful originals like Wednesday, Money Heist, and Bridgerton. This acquisition offers viewers a unique opportunity to access an extensive library of both classic and contemporary content from two of the most influential companies in entertainment.
Greg Peters, co-CEO of Netflix, adds, “This acquisition will improve our offering and accelerate our business for decades to come. 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.”
Enhancing the consumer experience
The acquisition brings added value to Netflix’s subscribers by significantly enhancing the platform’s content library. Netflix members will now have access to an even broader range of premium TV and film content, including HBO and HBO Max programming, making the platform even more compelling for new and existing users.
David Zaslav, President and CEO of Warner Bros. Discovery, shares, “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. 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.”
Strengthening the entertainment ecosystem
This acquisition is expected to significantly strengthen the entire entertainment ecosystem. Netflix’s expanded studio capabilities will increase its U.S. production capacity, while also bolstering investment in original content. This expansion will generate new opportunities for talent and content creators, offering more avenues to work with iconic intellectual property and tell new stories.
Moreover, the deal is expected to create jobs and provide long-term growth opportunities within the entertainment sector, ensuring that both companies can continue to thrive in an increasingly competitive market.
Financials and structure of the deal
Under the terms of the agreement, Netflix will pay $23.25 in cash and $4.50 in Netflix common stock for each share of Warner Bros. Discovery common stock outstanding at the time of the transaction’s close. This values Warner Bros. Discovery at $27.75 per share, with a total equity value of approximately $72.0 billion and an enterprise value of $82.7 billion. The transaction is subject to regulatory approvals and the completion of the separation of Discovery Global.
The stock component of the transaction is subject to a collar, under which Warner Bros. Discovery shareholders will receive Netflix stock valued at $4.50 per share, based on a 15-day volume-weighted average price of Netflix shares three trading days before closing. If the Netflix stock price falls below $97.91, WBD shareholders will receive 0.0460 Netflix shares for each WBD share. If it exceeds $119.67, they will receive 0.0376 Netflix shares for each WBD share.
Closing timeline and next steps
The deal, which was unanimously approved by the boards of directors of both Netflix and Warner Bros. Discovery, is expected to close within 12-18 months, contingent upon the completion of Discovery Global’s separation and the necessary regulatory approvals. The transaction will also need the approval of Warner Bros. Discovery’s shareholders.
Moelis & Company LLC is acting as Netflix’s financial advisor, while Skadden, Arps, Slate, Meagher & Flom LLP is providing legal counsel. Warner Bros. Discovery has enlisted Allen & Company, J.P. Morgan, and Evercore as its financial advisors, with Wachtell Lipton, Rosen & Katz and Debevoise & Plimpton LLP acting as legal counsel.
