Netflix announced plans to acquire Warner Bros. in a transformative agreement valued at $82.7 billion in enterprise value and $72 billion in equity value. The deal follows Warner Bros. Discovery’s separation of its Global Networks division, Discovery Global, which is expected to be completed in the third quarter of 2026. The merger will unite Netflix’s global entertainment platform with Warner Bros.’ century-long legacy of film and television content, bringing together major franchises and studios under one combined company.
Under the terms of the agreement, Warner Bros. Discovery shareholders will receive $23.25 in cash and $4.501 in Netflix stock per share, subject to a collar tied to Netflix’s 15-day volume-weighted average price. The acquisition has received unanimous approval from the boards of both companies and is expected to close 12 to 18 months after the separation of Discovery Global and the required regulatory approvals.
The deal positions Netflix to significantly expand its content library by integrating Warner Bros.’ extensive catalog of films and series, including The Big Bang Theory, Game of Thrones, The Wizard of Oz, and the DC Universe. These additions complement Netflix’s existing lineup of global hits such as Wednesday, Bridgerton and Money Heist. Netflix also plans to maintain Warner Bros.’ operational structure, including theatrical releases for major films.
The acquisition is expected to strengthen Netflix’s production capabilities, increase U.S. content output, broaden opportunities for creative talent and drive long-term shareholder value. Netflix projects that it will realize between $2 billion and $3 billion in annual cost savings within three years and anticipates the deal will increase GAAP earnings per share by year two. The combined entity is also expected to accelerate investment in original productions and expand opportunities for creators across new and established franchises.
Warner Bros. Discovery previously announced its intention to divide the company into two publicly traded entities: one housing its streaming and studio operations, and another, Discovery Global, overseeing its global networks portfolio, including CNN, TNT Sports, and Discovery-branded channels. The newly formed Discovery Global will not be included in the Netflix transaction.
Support: Financial advisors for the deal include Moelis & Company for Netflix and Allen & Company, J.P. Morgan, and Evercore for Warner Bros. Discovery. Legal advisors include Skadden, Arps, Slate, Meagher & Flom LLP for Netflix and Wachtell Lipton, Rosen & Kat,z and Debevoise & Plimpton LLP for Warner Bros. Discovery. Netflix also secured debt financing commitments from Wells Fargo, BNP, and HSBC.
KEY QUOTES:
“Our mission has always been to entertain the world. 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. Together, we can give audiences more of what they love and help define the next century of storytelling.”
Ted Sarandos, Co-CEO, Netflix
“This acquisition will improve our offering and accelerate our business for decades to come. Warner Bros. has helped define entertainment for more than a century and continues to do so with phenomenal creative executives and production capabilities. With our global reach and proven business model, we can introduce a broader audience to the worlds they create—giving our members more options, attracting more fans to our best-in-class streaming service, strengthening the entire entertainment industry and creating more value for shareholders.”
Greg Peters, Co-CEO, Netflix
“Today’s announcement combines two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most. For more than a century, Warner Bros. has thrilled audiences, captured the world’s attention, and shaped our culture. By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come.”
David Zaslav, President and CEO, Warner Bros. Discovery
