Netflix has reached a definitive agreement to acquire the TV and film studios and streaming division of Warner Bros. Discovery (WBD) in a landmark $72 billion all-cash-and-stock deal, widely described as one of the most consequential transactions in media history. Under the terms of the agreement, each WBD shareholder will receive $23.25 in cash and $4.501 in shares of Netflix common stock for each share of WBD common stock outstanding at the closing of the transaction. The transaction values Warner Bros. Discovery at $27.75 per share, implying a total equity value of approximately $72.0 billion and an enterprise value of roughly $82.7 billion. This offer emerged victorious from a competitive bidding process in which WBD also reviewed proposals from major contenders, including Paramount Skydance and Comcast.
This acquisition brings together two pioneering entertainment businesses, combining Netflix’s innovation, global reach, and best-in-class streaming service with Warner Bros.’ century-long legacy of world-class storytelling. Beloved franchises, shows, and movies will join Netflix’s extensive portfolio, creating an extraordinary entertainment offering for audiences worldwide. “Our mission has always been to entertain the world,” said Ted Sarandos, co-CEO of Netflix. “By combining Warner Bros.’ incredible library of shows and movies—from timeless classics like Casablanca and Citizen Kane to modern favorites 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.”
“This acquisition will improve our offering and accelerate our business for decades to come,” continued Greg Peters, co-CEO of Netflix. “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.”
“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,” said David Zaslav, President and CEO of Warner Bros. Discovery. “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.”
As both companies stated, the deal will combine:
- Complementary strengths and assets: Warner Bros.’ studios are world-class, with Warner Bros. recognized as a leading supplier of television titles and filmed entertainment. HBO and HBO Max also provide a compelling, complementary offering for consumers. Netflix expects to maintain Warner Bros.’ current operations and build on its strengths, including theatrical releases for films.
- More choice and greater value for consumers: By adding the deep film and TV libraries and HBO and HBO Max programming, Netflix members will have even more high-quality titles from which to choose. This also allows Netflix to optimize its plans for consumers, enhancing viewing options and expanding access to content.
- A stronger entertainment industry: This acquisition will enhance Netflix’s studio capabilities, allowing the Company to significantly expand U.S. production capacity and continue to grow investment in original content over the long term, which will create jobs and strengthen the entertainment industry.
- More opportunities for the creative community: By uniting Netflix’s member experience and global reach with Warner Bros.’ renowned franchises and extensive library, the Company will create greater value for talent—offering more opportunities to work with beloved intellectual property, tell new stories, and connect with a broader audience than ever before.
- More value for shareholders: By offering members a wider selection of quality series and films, Netflix expects to attract and retain more members, drive more engagement, and generate incremental revenue and operating income. The Company also expects to realize at least $2-3 billion of cost savings per year by the third year and expects the transaction to be accretive to GAAP earnings per share by year two.
In June 2025, WBD announced plans to separate its Streaming & Studios and Global Networks divisions into two separate publicly traded companies. This separation is now expected to be completed in Q3 2026, before the transaction closes. The newly separated publicly traded company holding the Global Networks division, Discovery Global, will include premier entertainment, sports, and news television brands around the world, including CNN, TNT Sports in the U.S., and Discovery, free-to-air channels across Europe, and digital products such as Discovery+ and Bleacher Report.
The transaction was unanimously approved by the Boards of Directors of both Netflix and WBD. In addition to the completion of the separation of Discovery Global (WBD’s Global Networks business), completion of the transaction is subject to required regulatory approvals, approval of WBD shareholders, and other customary closing conditions. The transaction is expected to close in 12-18 months.
Despite the enthusiasm around the deal, industry analysts warn of steep regulatory scrutiny in both the United States and Europe, given the scale of the combined streaming subscriber base, nearly 130 million users according to current estimates, and the concentration of content under a single entity. To address potential antitrust concerns, Netflix has reportedly committed to maintaining theatrical releases for Warner Bros. films and continuing to honour existing film distribution agreements, a move intended to preserve competition in the cinematic market. If approved and finalized, expected after WBD completes the planned spin‑off of its cable and global networks unit in mid‑2026, the deal will reshape the competitive dynamics of global entertainment, giving Netflix a scale and library depth that challenges the dominance of legacy studios and streamers alike.
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