In one of the biggest mergers in entertainment history, Netflix and Warner Bros. Discovery announced a definitive agreement under which Netflix will acquire Warner Bros. for a total enterprise value of $82.7 billion. The equity value of the deal stands at $72 billion, making it one of the most significant media acquisitions of the decade. The transaction, a mix of cash and stock, values each Warner Bros. Discovery (WBD) share at $27.75, subject to final adjustments and collar conditions. The deal is expected to close 12 to 18 months after regulatory approvals and the completion of WBD’s previously announced corporate separation.
This acquisition will take effect only after WBD completes the spin-off of its Global Networks division, Discovery Global, into a new publicly traded company. The spin-off, now projected for Q3 2026, will carve out major assets such as CNN, Discovery, TNT Sports, Discovery+, free-to-air channels across Europe and the Bleacher Report digital brand. Once this separation is complete, Netflix will assume full control of Warner Bros.’ studios, HBO, HBO Max, and an extensive content library spanning more than a century of film and television.
The merger aims to bring together two entertainment powerhouses: Netflix, known for its streaming dominance and expansive global reach, and Warner Bros., home to some of the most valuable franchises in entertainment history. Titles including The Big Bang Theory, Game of Thrones, The Wizard of Oz, The Sopranos, the DC Universe, Harry Potter and other iconic IPs will now sit alongside Netflix originals such as Bridgerton, Stranger Things, Money Heist and Wednesday. Together, the combined library is positioned to be one of the richest catalogues in streaming and film production.
Netflix co-CEO Ted Sarandos said the company’s mission has always been to entertain the world, and the addition of Warner Bros.’ legendary library and creative capabilities will help expand that vision. He highlighted the opportunity to merge timeless classics, modern blockbusters and Netflix’s culture-shaping originals under one platform, creating a unified entertainment destination for global audiences. Co-CEO Greg Peters added that the acquisition will accelerate Netflix’s long-term content strategy, expand its U.S. studio footprint and enhance its ability to invest in large-scale productions. The company expects to drive higher engagement and subscriber growth by offering members a broader selection of premium films and series.
David Zaslav, CEO of Warner Bros. Discovery, called the merger a combination of two historic storytelling enterprises. He noted that Warner Bros. has shaped entertainment culture for more than a century and that the partnership with Netflix will help ensure its stories reach even broader audiences in the decades ahead.
Beyond expanding its library, Netflix expects to achieve significant operational benefits from the acquisition. The company projects annual cost savings of at least $2 to $3 billion by the third year of the merger, driven by combined production efficiencies, streamlined operations and scaled global distribution. Netflix also expects the deal to be accretive to GAAP earnings per share by year two of closing.
For creators, Netflix says the combination will open new opportunities by pairing Warner Bros.’ iconic IP with Netflix’s distribution reach across more than 190 countries. Filmmakers, showrunners and production houses will gain access to larger audiences, increased investment and new avenues for reimagining legacy franchises.
WBD shareholders will receive $23.25 in cash and $4.50 worth of Netflix shares for each share they hold. The stock portion is subject to a collar mechanism based on Netflix’s 15-day volume weighted average price near closing. Advisory roles on the transaction include Moelis & Company and Skadden for Netflix, and J.P. Morgan, Evercore and Allen & Company for Warner Bros. Discovery.
If completed, the deal will reshape Hollywood’s competitive landscape, creating a streaming powerhouse with unmatched content depth and global influence.
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