Netflix seals agreement to acquire Warner Bros. for $82.7b

California, United States — Netflix and Warner Bros. Discovery (WBD) have signed a definitive agreement for Netflix to acquire Warner Bros., including its film and television studios, HBO Max and HBO, in a cash-and-stock deal valuing WBD at an enterprise value of about $82.7b. 

The transaction, worth $27.75 per WBD share, is set to close after WBD completes the previously announced separation of its Global Networks division into a new publicly traded entity, Discovery Global, expected in the third quarter of 2026.

The acquisition unites Netflix’s global streaming scale with Warner Bros.’ century-old catalogue and franchises such as The Sopranos, Game of Thrones, The Wizard of Oz and the DC Universe. 

Netflix co-CEO Ted Sarandos said, “Our mission has always been to entertain the world. By combining Warner Bros.’ incredible library of shows and movies—from timeless classics like Casablanca and Citizen Kane to modern favourites like Harry Potter and Friends—with our culture-defining titles like Stranger Things, KPop Demon Hunters and Squid Game, we’ll be able to do that even better. Together, we can give audiences more of what they love and help define the next century of storytelling.”

Co-CEO Greg Peters added, “This acquisition will improve our offering and accelerate our business for decades to come. Warner Bros. has helped define entertainment for more than a century and continues to do so with phenomenal creative executives and production capabilities. 

“With our global reach and proven business model, we can introduce a broader audience to the worlds they create—giving our members more options, attracting more fans to our best-in-class streaming service, strengthening the entire entertainment industry and creating more value for shareholders,” Peters said further. 

Meanwhile, WBD chief executive David Zaslav said, “Today’s announcement combines two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most.”

Under the agreement, WBD shareholders will receive $23.25 in cash and $4.50 in Netflix shares per WBD share, subject to a collar tied to Netflix’s VWAP before closing. 

Netflix estimates annual cost savings of $2–3 billion by the third year and expects the deal to be accretive to GAAP earnings per share by year two. 

The transaction has been unanimously approved by both companies’ boards and remains subject to regulatory clearance, WBD shareholder approval and customary conditions.

“For more than a century, Warner Bros. has thrilled audiences, captured the world’s attention, and shaped our culture. By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come,” Zaslav asserted.