Netflix acquires Warner Bros. in an $82.7 billion deal
It’s official: Netflix and Warner Bros. Discovery announced on Friday an agreement under which Netflix will acquire Warner Bros. including its film and television studios, HBO Max and HBO.
The deal has a total enterprise value (including debt) of about $82.7 billion, with an equity value of $72 billion, the companies said. The announcement of Netflix’s deal to acquire Warner Bros.’ streaming and studio operations to acquire came after a weeks-long bidding war that pitted the streaming giant against David Ellison’s Paramount Skydance and Comcast. News broke Thursday evening that Netflix had entered exclusive negotiations with WBD over a deal for Warner Bros. and HBO Max.
Netflix said it expects “Warner Bros.” current activities and building on its strengths,” including theatrical releases for films. In the short term, Netflix indicated that it would keep HBO Max as a discrete service, while also touting the addition of HBO and HBO Max content to its offering.
“By adding the company’s extensive movie and TV libraries and HBO and HBO Max programming, Netflix members will have even more high-quality titles to choose from,” the company said. “This will also allow Netflix to optimize its plans for consumers, improve viewing options and expand access to content.”
The cash and stock transaction is valued at $27.75 per WBD share. The deal is expected to close in the next 12 to 18 months, the companies said, following the previously announced split of WBD’s TV network division, Discovery Global, into a new publicly traded company, now expected to close in the third quarter of 2026.
Under the terms of the agreement, each WBD shareholder will receive $23.25 in cash and $4.50 in shares of Netflix common stock for each outstanding share of WBD upon closing of the transaction.
The transaction was unanimously approved by the boards of directors of both Netflix and Warner Bros. Discovery. The deal is subject to the completion of Discovery Global’s spin-off, as well as regulatory approvals, approval of the deal by WBD shareholders and other “customary closing conditions.”
According to the companies, this acquisition “brings together two groundbreaking entertainment companies, combining the innovation, global reach and best-in-class streaming service of Netflix with Warner Bros.” centuries-long legacy of world-class storytelling. Beloved franchises, shows and films such as ‘The Big Bang Theory,’ ‘The Sopranos,’ ‘Game of Thrones,’ ‘The Wizard of Oz’ and the DC Universe will join Netflix’s extensive portfolio, including ‘Wednesday,’ ‘Money Heist,’ ‘Bridgerton,’ ‘Adolescence’ and ‘Extraction,’ creating extraordinary entertainment offerings for a global audience.”
“Our mission has always been to entertain the world,” Netflix co-CEO Ted Sarandos said in a statement. “By combining Warner Bros.’ incredible library of shows and movies – from timeless classics like ‘Casablanca’ and ‘Citizen Kane’ to modern favorites like Harry Potter and ‘Friends’ – we can do even better with our culture-defining titles like ‘Stranger Things’, ‘KPop Demon Hunters’ and ‘Squid Game’. Together we can give audiences more of what they love and help define the next century of storytelling.”
Greg Peters, co-CEO of Netflix, added: “Warner Bros. has helped define entertainment for more than a century and continues to do so with phenomenal creative leadership and production capabilities. With our global reach and proven business model, we can introduce broader audiences 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 greater shareholder value.”
said David Zaslav, president and CEO of Warner Bros. Discovery “Today’s announcement combines two of the world’s largest storytelling companies to bring even more people the entertainment they love most. For more than a century, Warner Bros. has thrilled audiences, captured the world’s attention and shaped our culture. By working with Netflix, we will ensure that people everywhere can continue to enjoy the world’s most resonant stories for generations to come.”
In June 2025, WBD announced plans to split its streaming and studio businesses (under the Warner Bros. banner) and its TV network group (as Discovery Global) into two separate publicly traded companies. This separation is now expected to close in the third quarter of 2026, prior to the closing of the Netflix transaction. The recently separated Discovery Global, led by current WBD CFO Gunnar Wiedenfels, will include properties from CNN, TNT Sports in the US and Discovery; free-to-air channels in Europe; and digital products including Discovery+ and Bleacher Report.
