Netflix has acquired Warner Bros. Discovery for $82.7 billion.

Historic Agreement Between Netflix and Warner Bros. Discovery

Hollywood has hosted a historic agreement that will fundamentally impact the global entertainment industry. Netflix has signed a definitive agreement to acquire Warner Bros. film and television studios, including HBO Max and HBO, from Warner Bros. Discovery (WBD).

Value of $82.7 Billion

The total enterprise value of this massive acquisition has been set at approximately $82.7 billion, with a equity value of $72 billion. The agreement will occur after the separation of WBD's global networks division (Discovery Global) into a separate publicly traded company.

Details of the Agreement

Under the agreement, which involves cash and stock transactions, each WBD shareholder will receive $23.25 in cash and approximately $4.50 worth of Netflix shares upon closing.

Iconic Content Under One Roof

This strategic move brings together Netflix's innovative broadcasting power with Warner Bros.' century-long storytelling legacy. Upon completion of the agreement, iconic productions such as "Game of Thrones", "Harry Potter", "The Sopranos", and "DC Universe" will merge with Netflix's popular content like "Stranger Things", "Squid Game", and "Bridgerton" to create a broader portfolio.

CEOs' Statements

Netflix Co-CEO Ted Sarandos emphasized that this merger would strengthen their mission to serve audiences better by bringing timeless classics together with modern favorites. Warner Bros. Discovery CEO David Zaslav stated that this step would ensure the world's most resonant stories are passed on to future generations.

Financial Impacts and Process

From a financial perspective, Netflix anticipates that this acquisition will create value for shareholders, increase membership, and generate at least $2-3 billion in cost savings by the third year. However, the agreement will proceed based on the separation process of WBD's CNN, TNT Sports, and Discovery channels within the Discovery Global division, which is expected to be completed in the third quarter of 2026.

This transaction is subject to approval by regulatory bodies and shareholders, with completion expected within 12 to 18 months.