Business
Netflix to Buy Warner Bros in $82.7 Billion Deal After Discovery Split
Netflix Inc said on Friday it has agreed to buy Warner Bros from Warner Bros Discovery (WBD) in a cash-and-stock deal valued at $82.7 billion, marking one of the largest entertainment acquisitions in history.
The transaction, which carries an equity value of $72 billion, will give Netflix control of Warner Bros.’ film and television studios, HBO and HBO Max. It is expected to close 12 to 18 months after WBD completes the planned separation of its Global Networks division, now expected in Q3 2026.
Under the terms, WBD shareholders will receive $23.25 in cash and $4.50 in Netflix stock per share, subject to a collar tied to Netflix’s share price.
Strategic Shift
The deal will combine Netflix’s global streaming service with Warner Bros.’ century-old content library, including franchises such as Harry Potter, the DC Universe, Game of Thrones, The Sopranos, and The Big Bang Theory. Netflix said it plans to maintain Warner Bros.’ current operations, including its theatrical release schedule.
Netflix Co-CEO Ted Sarandos said the acquisition would strengthen the company’s long-term content strategy.
“By bringing Warner Bros’ library together with our originals, we can broaden our offering and reach more audiences globally,” he said.
Netflix expects to achieve $2–3 billion in annual cost synergies within three years and said the deal would become earnings-accretive by the second year after closing.
WBD Restructuring
The acquisition follows WBD’s earlier decision to break up the company, separating its Streaming & Studios and Global Networks divisions. The carve-out to be renamed Discovery Global will hold cable and news brands including CNN, TNT Sports, Discovery Channel, and digital platforms such as Discovery+ and Bleacher Report. These assets are not included in the Netflix transaction.
WBD CEO David Zaslav said combining with Netflix would extend the reach of Warner Bros’ content “to even more people around the world.”
Regulatory Path
The boards of both companies have unanimously approved the agreement, but the deal will require regulatory clearance in the U.S. and several international markets, as well as approval from WBD shareholders.
Financial advisers on the transaction include Moelis & Company for Netflix, and Allen & Company, J.P. Morgan and Evercore for WBD. Netflix’s legal counsel is Skadden, Arps, Slate, Meagher & Flom, while WBD is represented by Wachtell Lipton and Debevoise & Plimpton.
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