Netflix and Warner Bros. Discovery have entered into a definitive agreement that will place Warner Bros., HBO Max and HBO under Netflix control. The deal follows the planned separation of Discovery Global into a standalone public company in Q3 2026. The transaction carries a total enterprise value of $82.7 billion and an equity value of $72.0 billion, with each Warner Bros. Discovery shareholder set to receive $23.25 in cash and $4.50 in Netflix stock per share, subject to a collar. Both boards approved the agreement, and the companies expect closing within 12 to 18 months pending regulatory and shareholder approval.
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The acquisition brings together Netflix’s established global streaming platform with Warner Bros.’ extensive portfolio of film and television properties. Warner Bros.’ library includes titles such as The Big Bang Theory, The Sopranos, Game of Thrones, The Wizard of Oz and the DC Universe. These properties will join Netflix franchises including Stranger Things, Wednesday, Money Heist, Bridgerton, Adolescence and Extraction. The companies frame this combination as a way to offer audiences a wider selection of established franchises and new originals.
Ted Sarandos, Netflix co-CEO, described the merger as an opportunity to introduce a broader audience to Warner Bros.’ catalog, from classics such as Casablanca and Citizen Kane to modern series including Harry Potter and Friends. Greg Peters, Netflix co-CEO, noted that the acquisition strengthens Netflix’s long-term strategy and gives the company the ability to expand U.S. production capacity and grow investment in original programming. He emphasized the value of Warner Bros.’ production teams and their established franchises, which Netflix plans to support while maintaining current studio operations, including theatrical releases.
David Zaslav, President and CEO of Warner Bros. Discovery, called the agreement a union of two influential storytelling companies. He stated that Warner Bros.’ legacy continues under a structure that gives viewers expanded access to its catalog through Netflix’s platform. Warner Bros. Discovery’s planned restructuring, which separates the company into two public entities, Streaming & Studios and Discovery Global, sets the stage for this transition. Discovery Global will hold entertainment, sports and news networks including CNN, TNT Sports, Discovery and Discovery+. The separation must occur before the Netflix transaction closes.
Netflix expects the acquisition to generate significant financial benefits. The company projects $2–3 billion in annual cost savings by the third year and anticipates accretion to GAAP earnings per share by year two. Netflix also believes that the broader content offering will drive membership growth, increase engagement and support additional revenue.
The agreement includes detailed terms for the stock component. WBD shareholders will receive Netflix shares valued at $4.50 per WBD share if the 15-day volume weighted average price of Netflix stock remains between $97.91 and $119.67 before closing. If the price falls below that range, shareholders will receive 0.0460 Netflix shares per WBD share. If it exceeds the range, shareholders will receive 0.0376 shares.
Moelis & Company and Skadden, Arps, Slate, Meagher & Flom LLP advise Netflix, with Wells Fargo, BNP and HSBC providing debt financing support. Warner Bros. Discovery works with Allen & Company, J.P. Morgan, Evercore and legal counsel from Wachtell Lipton Rosen & Katz and Debevoise & Plimpton LLP.
The companies describe this merger as a strategic expansion of content resources, production capacity and global reach. Once Discovery Global’s separation concludes and approvals finalize, Netflix will integrate Warner Bros.’ studios, HBO Max and HBO into its entertainment ecosystem.
