Netflix Inc. has announced a landmark agreement to acquire Warner Bros. from Warner Bros. Discovery (WBD) in a cash-and-stock transaction that values the studio at an enterprise figure of about $82.7 billion and an equity value of $72 billion.
The deal, one of the largest in entertainment history, brings together the world’s leading streaming platform and one of cinema’s most storied studios.
Under the deal, each WBD shareholder will receive $23.25 in cash and an additional $4.501 in Netflix stock for every WBD share at closing. The transaction values WBD at $27.75 per share, subject to a collar tied to Netflix’s stock price.
The acquisition is expected to close after the planned separation of WBD’s Global Networks division into a new publicly traded company, Discovery Global, which is now scheduled for the third quarter of 2026.
The merger gives Netflix control of Warner Bros. Pictures and Warner Bros. Television, as well as HBO and HBO Max.
It also delivers a vast library of globally recognized titles, including Game of Thrones, Harry Potter, The Sopranos, The Big Bang Theory, the DC Universe, and classics such as The Wizard of Oz. These will complement Netflix’s own slate of worldwide hits including Wednesday, Money Heist, Bridgerton and Extraction.
Netflix co-chief executive Ted Sarandos said the company sees the merger as a way to deepen its mission to entertain audiences globally.
He noted that combining Warner Bros.’ extensive library, which ranges from Casablanca to Friends, with Netflix’s own culture-defining originals, will allow the platform to serve viewers “even better.”
His fellow co-chief executive Greg Peters said the acquisition strengthens Netflix’s long-term growth ambitions. Peters pointed to Warner Bros.’ creative teams and production capabilities, adding that Netflix’s global reach will help introduce those stories to wider audiences while increasing options for subscribers and value for shareholders.
WBD president and chief executive David Zaslav said the decision brings together two of the most influential storytelling companies of the past century.
He emphasized that Warner Bros. has shaped culture for generations and that joining forces with Netflix ensures those stories will continue reaching global audiences far into the future.
For consumers, the deal is expected to expand Netflix’s catalogue with a larger array of premium titles, including HBO programming.
Energy Ministry Orders UEDCL Board to Investigate Top Management Over Performance GapsNetflix also intends to maintain Warner Bros.’ traditional theatrical release model for film, ensuring that blockbuster titles continue to debut in cinemas before streaming.
Industry analysts say the acquisition will significantly bolster Netflix’s studio capabilities, expand its production footprint in the United States and deepen its investment in original content.
The company expects to generate between $2 billion and $3 billion in annual cost savings by the third year after closing and anticipates that the deal will add to its GAAP earnings per share by the second year.
The transaction follows WBD’s 2025 announcement that it would split its Streaming & Studios division from its Global Networks arm.
Once the separation is complete, Discovery Global will hold WBD’s broadcast and cable networks, including CNN, TNT Sports, Discovery-branded channels across Europe, and digital properties such as Discovery+ and Bleacher Report.
The stock component of the deal includes a collar mechanism. If the 15-day volume-weighted average price of Netflix shares falls below $97.91, WBD shareholders will receive 0.0460 Netflix shares.
If the average exceeds $119.67, the payout adjusts to 0.0376 Netflix shares. If the stock trades within that range, shareholders receive stock valued at $4.50 per WBD share.
Boards of both companies have unanimously approved the agreement, which remains subject to regulatory review, shareholder approval and completion of the WBD spinoff. The companies expect the deal to close within 12 to 18 months.
If completed, the merger will mark a turning point for Hollywood as the digital streaming era converges more deeply with traditional studio power. The combined catalogue, production muscle and global reach of Netflix and Warner Bros. is poised to redefine the competitive landscape for years to come.
