Netflix has acquired Warner Bros. Discovery assets in a major deal worth approximately $ 82.7 billion, marking one of the largest takeovers in entertainment history.
The streaming giant acquired Warner Bros., including its film and television studios, HBO, and HBO Max, in a transaction that combines cash and stock.
Both companies announced the agreement on Friday, but the deal will only be completed after Warner Bros. Discovery separates its Global Networks division, Discovery Global, into a new publicly listed company by the third quarter of 2026.
The deal values Warner Bros. Discovery at 27.75 dollars per share, giving it a total equity value of about 72 billion dollars.
Under the agreement, each Warner Bros. Discovery shareholder will receive 23.25 dollars in cash and 4.50 dollars in Netflix stock for each share they own.
Netflix co-CEO Ted Sarandos said the acquisition aligns with the company’s long-term goals.
“Our mission has always been to entertain the world. By combining Warner Bros.’ incredible library of shows and movies with our culture-defining titles, we can do that even better,” Sarandos stated.
Netflix co-CEO Greg Peters explained how the acquisition will benefit the streaming platform.
“Warner Bros. has helped define entertainment for more than a century. With our global reach and proven business model, we can introduce a broader audience to the worlds they create,” Peters said.
Warner Bros. Discovery CEO David Zaslav described the deal as bringing together two major storytelling companies.
“For more than a century, Warner Bros. has thrilled audiences. By coming together with Netflix, we will ensure people everywhere continue to enjoy the world’s most resonant stories,” Zaslav stated.
According to both companies, the deal will give subscribers more viewing options, increase film and television production capacity in the United States, and create more jobs in the entertainment industry.
Netflix also expects to save between 2 and 3 billion dollars each year by the third year after the deal is completed, through combining operations and cutting costs.
The streaming company plans to keep Warner Bros.’ operations running as they currently are, including continuing to release films in cinemas before they appear on the streaming platform.
The acquisition will bring together popular franchises from both companies. Warner Bros. properties include the DC Universe superhero films, Harry Potter, The Sopranos, and Game of Thrones, while Netflix hits include Stranger Things, Money Heist, and Bridgerton.
Netflix says combining these popular entertainment brands will create a stronger offering for audiences around the world.
The deal still requires approval from government regulators and Warner Bros. Discovery shareholders before it can be finalized. However, the boards of directors of both companies have already approved the transaction.
If all approvals are granted, the companies expect the transaction to close within 12 to 18 months from now.
Several major financial companies advised on the deal. Moelis & Company served as financial adviser to Netflix, while Allen & Company, J.P. Morgan, and Evercore advised Warner Bros. Discovery.
The acquisition represents a significant shift in the entertainment industry, as streaming platforms continue to compete for content and subscribers globally.
For Nigerian viewers who enjoy content from both Netflix and HBO Max, the deal could eventually mean having access to both libraries through a single Netflix subscription, though the companies have not yet provided details about how the services will be integrated.
