Official: Netflix to Acquire Warner Bros. in $82.7 Billion Deal

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As a huge movie fan, I was thrilled to hear the news officially confirmed: Netflix is buying Warner Bros.! It’s a massive deal – around $82.7 billion overall, with $72 billion going towards the actual company. There’s just one thing that needs to happen first: Warner Bros. Discovery is planning to spin off its global networks business, Discovery Global, before the deal can be finalized. Still, it’s exciting times for cinema lovers like me!

According to the official statement, the agreement should be finalized between 12 and 18 months after the separation is finished in the third quarter of 2026.

Netflix is acquiring Warner Bros.’ film and TV studios, along with HBO, HBO Max, and DC, but will continue running these businesses as they are now.

What Netflix Is Buying

Netflix has significantly expanded its content library by adding many popular movies and shows from Warner Bros. Now, you’ll be able to stream franchises like Harry Potter, The Sopranos, Game of Thrones, The Big Bang Theory, The Wizard of Oz, and everything from the DC Universe alongside Netflix hits such as Stranger Things, Bridgerton, and Wednesday.

According to Ted Sarandos and Greg Peters, this agreement will allow Netflix to significantly grow its global entertainment offerings, increase content creation, and connect with a wider audience through both original and existing shows and movies.

Netflix co-CEO Ted Sarandos stated that the company’s goal is to provide entertainment globally. By adding Warner Bros.’ extensive collection of beloved shows and films—including classics like Casablanca and Citizen Kane, as well as popular series and movies like Harry Potter and Friends—to Netflix’s own hit titles such as Stranger Things, KPop Demon Hunters, and Squid Game, they aim to do so more effectively. This combination will allow them to offer viewers a wider range of content they enjoy and shape the future of storytelling.

According to Netflix co-CEO Greg Peters, this deal will significantly enhance what Netflix offers and fuel its growth for many years. Warner Bros. has been a major force in entertainment for over a century, consistently delivering high-quality content thanks to its talented team and production skills. By leveraging Netflix’s global platform and successful business approach, more people worldwide will be able to enjoy Warner Bros.’ content, boosting Netflix’s subscriber base, supporting the entertainment industry as a whole, and ultimately benefiting shareholders.

David Zaslav presented the purchase as a continuation of Warner Bros.’ 100-year history of influencing popular culture.

Warner Bros. Discovery and Netflix are joining forces to deliver even more of the entertainment people love, according to Warner Bros. Discovery’s CEO, David Zaslav. He stated that Warner Bros. has been captivating audiences and influencing culture for over a century, and this partnership will ensure those beloved stories continue to reach people around the world for many years to come.

More Content, More Production, More Expansion

Netflix explains that buying the company will help them offer more shows and movies, give more chances to filmmakers and other creatives, strengthen their production capabilities, and ultimately benefit investors.

Netflix will continue to show some Warner Bros. movies in theaters, and it will use the new content library to improve its streaming service. The company anticipates saving $2 to $3 billion each year starting in year three, and expects the deal to positively impact profits by year two.

This increased production also expands the U.S.’s ability to create content, and Netflix believes this is good for the entire entertainment industry.

Terms of the Deal

Warner Bros. Discovery shareholders will get $23.25 in cash plus $4.50 worth of Netflix stock for each share they own. The value of the Netflix stock is based on its average price over the 15 days leading up to the deal’s completion, with a set upper and lower limit.

This deal needs approval from regulators and Warner Bros. Discovery shareholders, and it also depends on the completion of Warner Bros. Discovery’s plan to spin off its global business. Once that spinoff is finished, the new, independent company—called Discovery Global—will include popular networks and streaming services like CNN, TNT Sports, Discovery, Discovery+ and Bleacher Report, as well as free-to-air channels in Europe.

Netflix is receiving financial advice from Moelis, Wells Fargo, BNP, and HSBC, while Warner Bros. Discovery is working with Allen & Co., J.P. Morgan, and Evercore.

Here is the official announcement from Netflix:

Netflix to Acquire Warner Bros. Following the Separation of Discovery Global for a Total Enterprise Value of $82.7 Billion (Equity Value of $72.0 Billion)

This deal brings together Warner Bros.’ famous movies and TV shows with Netflix’s streaming service, offering viewers an incredible range of entertainment.

Netflix to Maintain Warner Bros.’ Current Operations

This merger will benefit customers by providing more options and better prices. It will also open up new avenues for creators and deliver value to investors.

Acquisition Will Strengthen the Entertainment Industry

Netflix and Warner Bros. Discovery announced today that Netflix will be buying Warner Bros., including its movie and TV production studios, as well as the HBO Max and HBO streaming services.

The deal is worth $27.75 per share of Warner Bros. Discovery (WBD), with a total value of about $82.7 billion (including debt) and $72.0 billion based on just the company’s stock. It’s expected to be finalized after Warner Bros. Discovery spins off its Global Networks division, Discovery Global, as a separate public company, now projected to happen in the third quarter of 2026.

This deal unites two leaders in entertainment, bringing Netflix’s cutting-edge streaming technology and global presence together with Warner Bros.’ rich history of creating incredible stories. Popular shows and movies like The Big Bang Theory, The Sopranos, and Game of Thrones, along with classics such as The Wizard of Oz and the DC Universe, will now be available on Netflix. This adds to Netflix’s already impressive collection, including hits like Wednesday, Money Heist, Bridgerton, Adolescence, and Extraction, offering audiences around the world an amazing range of entertainment options.

As a total movie and TV buff, I was really interested to hear what Ted Sarandos, one of the heads of Netflix, had to say. He basically explained that Netflix always aims to give people great entertainment, and bringing Warner Bros.’ massive collection of films and shows – everything from golden age classics like Casablanca and Citizen Kane to huge modern hits like Harry Potter and Friends – together with their own big shows like Stranger Things, KPop Demon Hunters, and Squid Game, will let them do that even better. He believes this combination will give viewers more of what they’re craving and really shape the future of how stories are told.

According to Netflix co-CEO Greg Peters, this purchase will significantly enhance what we offer and drive our growth for many years. Warner Bros. has been a leader in entertainment for over a century, consistently delivering high-quality content thanks to its talented team and production skills. By leveraging our global platform and successful business approach, we can share their stories with more people, giving our subscribers a wider variety of choices, growing our fanbase, supporting the entertainment industry as a whole, and ultimately increasing value for our investors.

Warner Bros. Discovery and Netflix are joining forces to deliver even more of the entertainment people love, according to Warner Bros. Discovery’s CEO, David Zaslav. He stated that Warner Bros. has been captivating audiences and influencing culture for over a century, and this partnership will ensure those beloved stories continue to reach viewers around the world for many years to come.

Combination Will Offer More Choice, More Opportunities, More Value

  • Complementary strengths and assets: Warner Bros.’ studios are world-class, with Warner Bros. recognized as a leading supplier of television titles and filmed entertainment. HBO and HBO Max also provide a compelling, complementary offering for consumers. Netflix expects to maintain Warner Bros.’ current operations and build on its strengths, including theatrical releases for films.
  • More choice and greater value for consumers: By adding the deep film and TV libraries and HBO and HBO Max programming, Netflix members will have even more high-quality titles from which to choose. This also allows Netflix to optimize its plans for consumers, enhancing viewing options and expanding access to content.
  • A stronger entertainment industry: This acquisition will enhance Netflix’s studio capabilities, allowing the Company to significantly expand U.S. production capacity and continue to grow investment in original content over the long term which will create jobs and strengthen the entertainment industry.
  • More opportunities for the creative community: By uniting Netflix’s member experience and global reach with Warner Bros.’ renowned franchises and extensive library, the Company will create greater value for talent—offering more opportunities to work with beloved intellectual property, tell new stories and connect with a wider audience than ever before.
  • More value for shareholders: By offering members a wider selection of quality series and films, Netflix expects to attract and retain more members, drive more engagement and generate incremental revenue and operating income. The Company also expects to realize at least $2-3 billion of cost savings per year by the third year and expects the transaction to be accretive to GAAP earnings per share by year two.

Transaction Details and Timing

According to the deal, Warner Bros. Discovery (WBD) shareholders will receive $23.25 in cash plus $4.50 worth of Netflix stock for each share of WBD they own when the deal closes. This values WBD at $27.75 per share, giving the company an overall equity value of around $72 billion and an enterprise value of approximately $82.7 billion.

Warner Bros. Discovery (WBD) initially announced in June 2025 that it would split its streaming and studio businesses from its traditional TV networks, creating two independent, publicly traded companies. This split is now projected to happen in the third quarter of 2026, before the current deal closes. The new company housing the TV networks, called Discovery Global, will feature popular channels and brands like CNN, TNT Sports (in the US), Discovery, various European free-to-air channels, and streaming services like Discovery+ and Bleacher Report.

The number of Netflix shares Warner Bros. Discovery (WBD) shareholders receive depends on Netflix’s stock price. If the average Netflix stock price over the 15 days before the deal closes (measured three business days prior) is between $97.91 and $119.67, shareholders will receive Netflix stock worth $4.50 per WBD share. If the average price falls below $97.91, they’ll receive 0.0460 Netflix shares for each WBD share. If the average price rises above $119.67, they’ll receive 0.0376 Netflix shares for each WBD share.

Both Netflix and Warner Bros. Discovery’s boards fully approved the deal. Finalizing it still depends on a few things: getting the necessary regulatory approvals, a vote of approval from Warner Bros. Discovery shareholders, and standard closing requirements. They anticipate the deal will be completed within 12 to 18 months, now that Discovery Global has been separated from Warner Bros. Discovery’s global networks.

I’ve been following the news about this deal, and it looks like Netflix has a strong team helping them out. Moelis & Company is advising them on the financial side, and the law firm Skadden, Arps, Slate, Meagher & Flom is handling the legal aspects. Plus, Wells Fargo is also providing financial advice, and they’ve secured committed debt financing with help from BNP and HSBC. It seems like everything is well-supported!

Warner Bros. Discovery is receiving financial advice from Allen & Company, J.P. Morgan, and Evercore. Wachtell Lipton, Rosen & Katz and Debevoise & Plimpton LLP are providing legal guidance.

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2025-12-05 15:34