Netflix Acquires Warner Bros. Discovery for $82.7 Billion

Historic Agreement Between Netflix and Warner Bros. Discovery

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

Valued at $82.7 Billion

The total enterprise value of this massive acquisition is approximately $82.7 billion, with an equity value of $72 billion. The agreement will take place following the separation of WBD's global networks division (Discovery Global) into a separate publicly traded company.

Details of the Agreement

Under the cash and stock transaction, each WBD shareholder is expected to receive $23.25 in cash and approximately $4.50 worth of Netflix shares at closing.

Iconic Content Under One Roof

With this strategic move, Netflix's innovative broadcasting power is combined with Warner Bros.' century-old 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”, resulting in a broader portfolio.

Statements from the CEOs

Netflix Co-CEO Ted Sarandos emphasized that this merger will 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 will ensure that the world’s most impactful stories are passed down to future generations.

Financial Impacts and Process

From a financial perspective, Netflix anticipates that this acquisition will create value for shareholders, increase subscriber engagement, and deliver at least $2-3 billion in annual cost savings by the third year. However, the agreement will proceed as part of the separation process of WBD’s CNN, TNT Sports, and Discovery channels within the Discovery Global division, expected to be completed in the third quarter of 2026.

This transaction, subject to regulatory and shareholder approval, is expected to be completed within 12 to 18 months.