Netflix has agreed to buy Warner Bros. in a major cash and stock deal valued at about 82.7 billion dollars, marking one of the biggest takeovers in the entertainment industry.
Both companies announced the agreement on Friday, confirming that Netflix will acquire Warner Bros., including its film and TV studios, HBO and HBO Max. 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 an equity value of about 72 billion dollars. Each WBD shareholder will receive 23.25 dollars in cash and 4.50 dollars in Netflix stock for each share.
Netflix co-CEO Ted Sarandos said the move fits the company’s long-term goal. He said, “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.”
Netflix co-CEO Greg Peters said the acquisition will help the company grow. According to him, “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.”
Warner Bros. Discovery CEO David Zaslav described it as a deal that brings together two major storytelling companies. He said, “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.”
The companies say the deal will give subscribers more viewing options, increase production capacity in the United States and create more jobs in the industry. Netflix also expects to save between 2 and 3 billion dollars each year by the third year after the deal closes.
Netflix plans to keep Warner Bros.’ operations running as they are, including theatrical releases for films. The company says bringing together popular franchises like the DC Universe, Harry Potter, The Sopranos and Game of Thrones with Netflix hits such as Stranger Things, Money Heist and Bridgerton will create a stronger entertainment offering for global audiences.
The deal still needs approval from regulators and WBD shareholders. It has already been cleared by the boards of both companies. If approved, the transaction is expected to close within 12 to 18 months.
Financial advisers for the deal include Moelis & Company for Netflix, while Allen & Company, J.P. Morgan and Evercore advised Warner Bros. Discovery.
