In one of the biggest media deals in modern entertainment history, Netflix and Warner Bros. Discovery (WBD) announced today that they have entered into a definitive agreement for Netflix to acquire Warner Bros., including its legendary film and television studios as well as HBO and HBO Max.
The cash-and-stock deal values the iconic Hollywood studio at an enterprise value of $82.7 billion and an equity value of $72.0 billion, or $27.75 per WBD share, subject to a pricing collar. The transaction is expected to close after WBD’s previously announced separation of its Global Networks division—now set for Q3 2026.
If completed, the acquisition would unite Netflix’s global streaming dominance with Warner Bros.’ century-long creative legacy, bringing under one umbrella some of the world’s most recognizable franchises; from Harry Potter, Game of Thrones, The Big Bang Theory, and The Sopranos to DC’s cinematic universe and timeless films like Casablanca and Citizen Kane.
Netflix co-CEO Ted Sarandos called the deal a “once-in-a-generation opportunity.”
“Our mission has always been to entertain the world,” Sarandos said. “By combining Warner Bros.’ incredible library with Netflix’s culture-defining titles like Stranger Things, Bridgerton, and Squid Game, we can give audiences more of what they love—and help define the next century of storytelling.”
Greg Peters, also co-CEO of Netflix, highlighted the strategic importance for growth:
“Warner Bros. has helped define entertainment for more than a century. With our global reach and business model, we can introduce an even broader audience to their worlds.”
WBD CEO David Zaslav praised the move as a continuation of Warner Bros.’ legacy:
“This combines two of the greatest storytelling companies in the world,” Zaslav said. “By coming together with Netflix, we ensure people everywhere will continue to enjoy the world’s most resonant stories for generations.”
What the Deal Means
For audiences:
Netflix members could gain access to an unprecedented library of iconic shows and films, as HBO and HBO Max programming join Netflix’s platform. The merger creates what could become the largest and deepest entertainment catalog in the streaming world.
For the industry:
The deal would dramatically reshape Hollywood, accelerating the ongoing consolidation of major studios. Netflix also expects to expand U.S. production capacity and invest more heavily in original content, moves it says will create jobs and bolster the entertainment ecosystem.
For creators:
The combined company promises more opportunities to work across beloved IP and reach wider global audiences.
For shareholders:
Netflix projects $2–3 billion in annual cost savings by year three and expects the transaction to become accretive to GAAP earnings by the second year.
Under the agreement, WBD shareholders will receive $23.25 in cash and $4.50 in Netflix stock per WBD share.
The stock component includes a pricing collar based on Netflix’s 15-day VWAP prior to closing.
The deal has been unanimously approved by both companies’ boards.
Closing remains contingent on regulatory approval, WBD shareholder approval, and the successful spin-off of WBD’s Global Networks division into a new company, Discovery Global, which will house CNN, TNT Sports, Discovery, various free-to-air channels in Europe, and digital products like Discovery+ and Bleacher Report.
If the acquisition proceeds as planned, it would mark a historic union of streaming innovation and Hollywood heritage, potentially reshaping the competitive landscape from Los Angeles to Wall Street and giving Netflix a powerhouse library unmatched in scale and global appeal.
Netflix will hold a conference call at 8:00am ET to discuss the announcement. A livestream will be available through the company’s investor relations portal.
