Netflix has agreed to acquire Warner Bros. from Warner Bros. Discovery in a deal that assigns the studio an enterprise value of about $82.7 billion, deepening the reshaping of the global entertainment industry. The agreement, priced at $27.75 per WBD share and carrying an equity value of roughly $72 billion, is expected to close after WBD completes the planned spin-off of its Global Networks division into a separate publicly traded company in the third quarter of 2026.
The deal would bring together Netflix’s global streaming scale with Warner Bros.’ catalogue of century-old film and television franchises, including Game of Thrones, The Big Bang Theory, The Wizard of Oz, the DC Universe and the HBO library. Netflix’s own stable of hits such as Stranger Things, Bridgerton and Money Heist would sit alongside Warner Bros.’ output, expanding the combined company’s slate across streaming, theatrical releases and international markets.
Netflix co-chief executives Ted Sarandos and Greg Peters said the acquisition will broaden viewing choices for global audiences, strengthen relationships with creative partners and create long-term value for shareholders. They said Warner Bros.’ studios and franchises, coupled with Netflix’s distribution platform, would help attract new audiences and deepen engagement across markets.
WBD chief executive David Zaslav called the merger a joining of “two of the world’s leading storytelling companies,” adding that the transaction maintains Warner Bros.’ film operations while integrating HBO and HBO Max into Netflix’s platform.
Netflix said it plans to expand U.S. production capacity, increase investment in original programming and create more opportunities for talent to work with globally recognised intellectual property. The company expects the transaction to generate between $2 billion and $3 billion in annual cost savings by the third year and to become accretive to GAAP earnings per share by the second year.
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Under the terms of the deal, WBD shareholders will receive $23.25 in cash and $4.50 in Netflix stock per share, subject to a collar tied to Netflix’s average trading price before closing. The boards of both companies unanimously approved the transaction.
Completion of the deal will require regulatory approvals, WBD shareholder approval and the successful separation of Discovery Global, in addition to customary closing conditions. The companies expect to complete the merger within 12 to 18 months.
Moelis & Company advised Netflix, while WBD received financial advice from Allen & Company, J.P. Morgan and Evercore. Legal counsel was provided by Skadden, Arps, Slate, Meagher & Flom LLP for Netflix and by Wachtell Lipton Rosen & Katz and Debevoise & Plimpton LLP for WBD. Committed debt financing is being arranged by Wells Fargo, BNP and HSBC.
