Netflix, Inc. (Netflix) and Warner Bros. Discovery, Inc. (WBD) announced today that they have entered into a definitive agreement under which Netflix will acquire Warner Bros., including its film and television studios, as well as HBO Max and HBO.
The transaction, a combination of cash and stock, is valued at $27.75 per WBD share (subject to a collar mechanism detailed below), representing a total enterprise value of approximately $82.7 billion and an equity value of around $72.0 billion. The deal is expected to close following the previously announced separation of WBD’s Global Networks division, Discovery Global, into a new publicly traded company, which is now projected to be completed in Q3 2026.
This acquisition unites two iconic entertainment companies, merging Netflix’s global streaming reach and innovative platform with Warner Bros.’ century-long legacy of storytelling excellence. The combined portfolio will feature beloved franchises and series including The Big Bang Theory, The Sopranos, Game of Thrones, The Wizard of Oz, and the DC Universe alongside Netflix originals such as Wednesday, Money Heist, Bridgerton, Adolescence, and Extraction, creating an unparalleled entertainment offering for audiences worldwide.
“Our mission has always been to entertain the world,” said Ted Sarandos, co-CEO of Netflix. “By bringing together Warner Bros.’ legendary library—from classics like Casablanca and Citizen Kane to modern favorites like Harry Potter and Friends—with our culture-defining hits like Stranger Things, KPop Demon Hunters, and Squid Game, we will deliver even more of what audiences love. Together, we can shape the future of storytelling for the next century.”
Greg Peters, co-CEO of Netflix, added, “This acquisition will enhance our offerings and accelerate growth for decades. Warner Bros. has been a cornerstone of global entertainment for over a century, and with Netflix’s global reach and proven business model, we can bring these incredible stories to an even wider audience, strengthening our streaming service and creating long-term value for shareholders.”
David Zaslav, President and CEO of Warner Bros. Discovery, commented, “Today marks the combination of two of the world’s greatest storytelling companies. Warner Bros. has captivated audiences for generations, and by joining forces with Netflix, we ensure that people everywhere will continue to enjoy the world’s most compelling stories for years to come.”
Under the agreement, WBD shareholders will receive $23.25 in cash plus $4.50 in Netflix common stock for each WBD share outstanding at closing. The stock portion is subject to a collar, which guarantees a Netflix stock value of $4.50 per WBD share if the 15-day volume-weighted average price (VWAP) of Netflix stock, measured three trading days before closing, falls between $97.91 and $119.67. If the VWAP is below $97.91, shareholders will receive 0.0460 Netflix shares per WBD share. If the VWAP is above $119.67, shareholders will receive 0.0376 Netflix shares per WBD share.
In June 2025, WBD announced plans to split its Streaming & Studios and Global Networks divisions into two independent publicly traded companies. This separation is now expected to be completed in Q3 2026, prior to the closing of the Netflix transaction. The newly independent company, Discovery Global, will house leading entertainment, sports, and news brands, including CNN, TNT Sports in the U.S., Discovery’s free-to-air channels in Europe, as well as digital platforms like Discovery+ and Bleacher Report.
The deal has received unanimous approval from the Boards of Directors of both companies. Beyond the separation of Discovery Global, the transaction is subject to regulatory approvals, WBD shareholder approval, and customary closing conditions. Completion is anticipated within 12–18 months.
