HOLLYWOOD, Calif., Dec. 5, 2025 — Netflix and Warner Bros. Discovery (WBD) have announced a landmark agreement under which Netflix will acquire Warner Bros., including its film and television studios, HBO, and HBO Max, in a deal valued at $82.7 billion. The transaction, which combines cash and stock, represents an equity value of approximately $72 billion and values each WBD share at $27.75.
The acquisition will take place following the planned separation of WBD’s Global Networks division, Discovery Global, into a new publicly traded company, expected by Q3 2026.
The deal unites Netflix’s global streaming reach and innovative platform with Warner Bros.’ century-long legacy of storytelling. Iconic franchises and shows—including The Big Bang Theory, The Sopranos, Game of Thrones, the DC Universe, The Wizard of Oz, and Harry Potter—will now be part of Netflix’s vast library, alongside its original hits like Stranger Things, Bridgerton, and Squid Game.
Netflix co-CEO Ted Sarandos said, “By combining Warner Bros.’ incredible library of shows and movies with our culture-defining titles, we can give audiences more of what they love and help define the next century of storytelling.”
Greg Peters, Netflix co-CEO, emphasized the impact on the industry and creative community: “This acquisition strengthens Netflix’s studio capabilities, expands U.S. production, and creates more opportunities for talent to work with beloved intellectual property.”
WBD CEO David Zaslav added, “Today’s announcement combines two of the greatest storytelling companies in the world, ensuring that people everywhere can continue to enjoy these resonant stories for generations to come.”
Consumer Benefits and Strategic Goals
Netflix plans to maintain Warner Bros.’ current operations, including theatrical releases, while integrating HBO and HBO Max programming into its platform. The combined portfolio will offer more choice, high-quality content, and access for global audiences. The deal is expected to generate at least $2–3 billion in annual cost savings by year three and be accretive to GAAP earnings per share by the second year.
Transaction Details
Under the agreement, WBD shareholders will receive $23.25 in cash and $4.50 in Netflix stock per share. The stock component is subject to a pricing collar to account for fluctuations in Netflix’s stock prior to closing. Completion of the acquisition is contingent on regulatory approval, WBD shareholder approval, and the separation of Discovery Global. Netflix and WBD anticipate the deal will close within 12–18 months.
Financial advisors for the transaction include Moelis & Company LLC, Wells Fargo, BNP, and HSBC for Netflix, and Allen & Company, J.P. Morgan, and Evercore for WBD. Legal counsel includes Skadden, Arps, Slate, Meagher & Flom LLP for Netflix, and Wachtell Lipton, Rosen & Katz and Debevoise & Plimpton LLP for WBD.
The acquisition is expected to expand Netflix’s global streaming offerings, provide more content for subscribers, strengthen the entertainment industry, and create greater value for shareholders.
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