In a landmark announcement poised to redefine the global entertainment landscape, Netflix, Inc., and Warner Bros. Discovery, Inc. (WBD) have reached a final agreement. Netflix will purchase the core Warner Bros. assets, which include its celebrated film and television production studios, along with the powerhouse streaming service, HBO Max, and the legendary HBO.
This transformative deal is structured as a mix of cash and stock, totaling an impressive $82.7 billion in total enterprise value, with the equity component valued at $72.0 billion. The transaction is set to close in late 2026, but only after a crucial preparatory step: the pre-announced spin-off of WBD’s Global Networks division, now named Discovery Global, into a separate, publicly traded company.
This acquisition unites two giants. It merges Netflix’s recognized innovation, immense global streaming presence, and proven modern business model with Warner Bros.’ century-old history of iconic storytelling and world-class content production.
The resulting combined library will be extraordinary. It will bring together beloved Warner Bros. franchises, movies, and TV shows, such as The Big Bang Theory, The Sopranos, Game of Thrones, The Wizard of Oz, and the entire DC Universe, under the same roof as Netflix’s current stable of global hits, including Wednesday, Money Heist, and Bridgerton.
Ted Sarandos, co-CEO of Netflix, emphasized that the acquisition accelerates the company’s mission to entertain the world. By integrating Warner Bros.’ vast and timeless library (from Casablanca to Friends) with Netflix’s own groundbreaking, culture-defining originals (Stranger Things and Squid Game), the combined entity expects to define the next generation of storytelling.
David Zaslav, President and CEO of Warner Bros. Discovery, echoed this sentiment, stating that the union ensures that Warner Bros.’ globally resonant stories will continue to be enjoyed by audiences for generations to come.
Under the financial terms, WBD shareholders will receive $27.75 for each share. This is comprised of $23.25 in cash and the remaining $4.50 in Netflix common stock. The stock portion includes a “collar” mechanism designed to protect the value that WBD shareholders receive, regardless of major short-term swings in Netflix’s stock price just before closing.
A critical step precedes the acquisition: the separation of WBD’s Global Networks division, now named Discovery Global. This spin-off is expected to be finalized in the third quarter of 2026.
Both the Boards of Directors of Netflix and WBD have unanimously approved the terms of the transaction. The final closing of the acquisition is expected to occur in 12 to 18 months, following the completion of the Discovery Global separation.
The deal remains subject to standard conditions, including required regulatory approvals and a final vote of approval from WBD shareholders.
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Source: Netflix
