Netflix, Inc. (the Company) and Warner Bros. Discovery, Inc. (WBD) today announced they have entered into a definitive agreement under which Netflix will acquire Warner Bros., including its film and television studios, HBO Max, and HBO. The cash and stock transaction implies a total equity value of approximately $72.0 billion (enterprise value of approximately $82.7 billion). The agreement follows WBD’s previously announced plan to separate its Global Networks division, Discovery Global, which is expected to be completed in the third quarter of 2026. The merger is anticipated to close 12 to 18 months from the announcement date.

The acquisition unites Netflix’s global reach and streaming model with Warner Bros.’ century-long legacy of world-class storytelling. Netflix is set to integrate iconic franchises and titles such as The Big Bang Theory, Game of Thrones, Harry Potter, and the DC Universe with its own extensive portfolio. The combination is intended to offer consumers more choice and greater value, create expanded opportunities for the creative community, and strengthen the overall entertainment industry by enhancing Netflix’s studio capabilities and U.S. production capacity. Netflix expects to realize at least $2 to $3 billion in annual cost savings by the third year and projects the transaction will be accretive to GAAP earnings per share by year two.

Netflix has committed to maintaining Warner Bros.’ current operations, including theatrical releases for films. Ted Sarandos, co-CEO of Netflix, stated that the combined entity will be better positioned to entertain the world by delivering a vast library of classic and culture-defining titles. Greg Peters, co-CEO of Netflix, noted that the acquisition will accelerate business growth for decades by leveraging Warner Bros.’ phenomenal creative and production capabilities. David Zaslav, President and CEO of Warner Bros. Discovery, emphasized that the union ensures people everywhere will continue to enjoy the world’s most resonant stories.

Under the terms of the agreement, each WBD shareholder will receive $23.25 in cash and $4.50 in shares of Netflix common stock for each share of WBD common stock outstanding. The stock component is subject to a 10% symmetrical collar structure. Completion of the transaction is subject to the prior separation of Discovery Global, required regulatory approvals, approval of WBD shareholders, and other customary closing conditions. The boards of directors of both Netflix and WBD unanimously approved the deal.

Netflix, Inc. is the world’s leading subscription streaming service, offering TV series, documentaries, and feature films across a wide variety of genres and languages to millions of members globally. The company focuses on continuous innovation and original content production to entertain the world on any internet-connected screen.

Click here for more press releases.

Launching a new film, TV project, or supply-chain solution? Share your updates with global entertainment leaders at updates@vitrina.ai.