Key Highlights
- Netflix to acquire Warner Bros for $82.7 billion enterprise value.
- Deal includes Warner Bros studios HBO and HBO Max.
- WBD shareholders to receive $27.75 per share in cash and stock.
- Transaction expected to close after Discovery Global separation in Q3 2026.
- Combined library to strengthen Netflix’s global content portfolio.
- Netflix expects $2–3 billion annual cost savings by year three.
- Acquisition projected to be EPS accretive by year two.
Netflix has announced a landmark agreement to acquire Warner Bros for a total enterprise value of $82.7 billion, marking one of the biggest entertainment industry deals to date. The acquisition will take place after Warner Bros. Discovery (WBD) completes the previously planned separation of its Global Networks division, Discovery Global, expected in Q3 2026.
Under the definitive agreement, Netflix will acquire Warner Bros’ extensive portfolio, including its iconic film and television studios, HBO, and streaming platform HBO Max. WBD shareholders will receive $23.25 in cash and $4.50 in Netflix stock per share, valuing the equity at approximately $72 billion.
The deal unites two entertainment giants—Netflix’s global streaming scale and advanced distribution capabilities with Warner Bros’ century-old legacy of storytelling and deep content library. The combined offering will bring franchises such as Game of Thrones, DC Universe, Harry Potter, The Sopranos, and The Big Bang Theory alongside Netflix’s globally successful titles including Stranger Things, Wednesday, Bridgerton, Squid Game, and Extraction.
Netflix confirmed plans to maintain Warner Bros’ existing operational structure, including theatrical releases for major films. The company stated that this strategic integration will expand viewer choice, enhance subscriber value, and strengthen U.S. and global production capacity.
Executives from both companies highlighted the long-term vision of the partnership. Netflix leaders emphasized the opportunity to accelerate growth, attract new audiences, and elevate the platform’s content depth. Warner Bros executives underscored that merging with Netflix will help preserve and expand the reach of its most influential stories for future generations.
Netflix expects the combined entity to generate significant financial benefits, including projected yearly cost synergies of $2–3 billion by the third year after closing. The transaction is anticipated to be accretive to earnings per share by year two.
The agreement awaits regulatory approvals, WBD shareholder approval, and completion of Discovery Global’s separation. The closing timeline is estimated at 12–18 months.