Netflix, Inc. entered an agreement to acquire Warner Bros., including its film and television studios as well as HBO and HBO Max, from Warner Bros. The cash-and-stock transaction values WBD at $27.75 per share, implying an equity value of about $72.0 billion and an enterprise value of roughly $82.7 billion.
According to the companies, the deal will close once WBD completes the previously announced separation of its Global Networks division into a new publicly traded company, Discovery Global.
Streaming Leader Meets Hollywood Studio
That deal is now expected in the third quarter of 2026, with the acquisition scheduled to follow 12 to 18 months later, subject to regulatory and shareholder approvals.
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It would marry Netflix’s global streaming platform and distribution network with Warner Bros.’ century-old studio operations and deep catalogue of film and TV content.
“Our mission has always been to entertain the world,” commented 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.”
Executives Pitch Scale and Content Breadth
Netflix and WBD said the combined group will offer subscribers more choice and perceived value by adding HBO and HBO Max programming and Warner Bros.’ extensive catalogue to Netflix’s service. The company indicated it will use the enlarged library to refine its consumer plans, potentially by adjusting tiers or packaging, while emphasizing wider viewing options
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For investors, Netflix expects the deal to drive subscriber growth and engagement and to deliver financial synergies. The company forecasts at least $2–3 billion in annual cost savings by the third year after closing and expects the transaction to be accretive to GAAP earnings per share by year two.
Deal Terms and Discovery Global Spin-Off
Under the terms of the agreement, each WBD shareholder will receive $23.25 in cash and $4.501 in Netflix common stock for each share of WBD common stock at closing.
The consideration values WBD at $27.75 per share, consistent with the approximately $72.0 billion equity value and $82.7 billion enterprise value for Warner Bros. Discovery.
In June 2025, WBD announced plans to split its Streaming & Studios and Global Networks divisions into separate publicly traded companies. The separation is now scheduled to complete in the third quarter of 2026, before the Netflix transaction closes.
The latest acquisition could also turn around the fortunes of the streaming giant. In October, Netflix reported revenue of $11.5 billion for the quarter ending September 2025, up about 17% from a year earlier and roughly in line with expectations, driven by subscriber growth, price increases, and advertising gains.
However, profits fell short after an unexpected tax charge in Brazil, unsettling investors despite record ad sales. Last year, the company voiced strong satisfaction with the crackdown on password sharing.
