In one of the biggest entertainment mergers in modern history, Netflix, Inc. and Warner Bros. Discovery, Inc. (WBD) announced today that they have entered into a definitive agreement for Netflix to acquire Warner Bros.—including its storied film and television studios, HBO Max, and HBO.
The deal, which combines cash and stock, values WBD at $27.75 per share and reflects a total enterprise value of approximately $82.7 billion. The transaction is expected to close following the already-planned separation of WBD’s Global Networks division into a new company, Discovery Global, slated for completion in Q3 2026.
If approved, the merger would unite Netflix’s global streaming platform with Warner Bros.’ century-long legacy of filmmaking and television production. Iconic titles—including The Big Bang Theory, The Sopranos, Game of Thrones, The Wizard of Oz, and the DC Universe—would join Netflix properties such as Wednesday, Money Heist, Bridgerton, and Extraction.
Netflix co-CEO Ted Sarandos said the acquisition aligns with the company’s long-standing mission to “entertain the world,” noting that Warner Bros.’ library spans timeless classics (Casablanca, Citizen Kane) to modern cultural forces (Harry Potter, Friends). Sarandos said the merger will allow Netflix to “give audiences more of what they love and help define the next century of storytelling.”
Co-CEO Greg Peters emphasized the long-term impact, saying the deal will “accelerate [Netflix’s] business for decades to come” by pairing its global reach with Warner Bros.’ production capabilities and creative talent.
WBD CEO David Zaslav called the announcement the combination of “two of the greatest storytelling companies in the world,” with the shared goal of bringing beloved entertainment to wider audiences.
What does this mean for the consumer?
Netflix members would gain access to Warner Bros.’ deep library of films, TV series, and HBO/HBO Max programming, expanding viewing options under one streaming platform.
Netflix says the acquisition would allow it to expand U.S. production capacity and invest further in original content, which it argues will strengthen the entertainment ecosystem and create new jobs.
The combined company expects to offer more opportunities for artists, writers, and filmmakers to work with well-known franchises and reach broader audiences.
Netflix anticipates $2–3 billion in cost savings by year three and expects the merger to increase earnings per share by year two.
How the Deal Works
At closing, WBD shareholders will receive $23.25 in cash and $4.501 in Netflix stock per share.
The transaction follows WBD’s previously announced plan to split the company into two publicly traded entities:
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Streaming & Studios (to be acquired by Netflix)
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Discovery Global, which will include CNN, TNT Sports, Discovery Channel, various free-to-air networks, and digital platforms such as Discovery+ and Bleacher Report
The potential consolidation of two major entertainment companies has already raised questions among industry groups. In a formal statement, the Producers Guild of America (PGA) expressed significant reservations about the merger’s implications:
“Producers are rightfully concerned about Netflix’s intended acquisition of one our industry’s most storied and meaningful studios. For the last century, the entertainment industry has employed millions of Americans, delighted audiences, and showcased the very best of our nation at home and abroad. As we navigate dynamic times of economic and technological change, our industry, together with policymakers, must find a way forward that protects producers’ livelihoods and real theatrical distribution, and that fosters creativity, promotes opportunities for workers and artists, empowers consumers with choices, and upholds freedom of speech. This is the test that the Netflix deal must pass. Our legacy studios are more than content libraries – within their vaults are the character and culture of our nation.”
Their comments reflect broader concerns about the future of theatrical distribution, job stability, and the preservation of long-standing studio identities as streaming platforms continue to reshape Hollywood.
The acquisition is subject to regulatory review, shareholder approval, and the completion of WBD’s corporate separation scheduled for 2026. If the deal proceeds, it would mark a significant shift in the global entertainment landscape—effectively merging the world’s largest streaming service with one of Hollywood’s oldest and most influential studios.
