Netflix has announced a definitive agreement to acquire Warner Bros. Discovery’s film and television studios, HBO and HBO Max for a total enterprise value of $82.7 billion. The cash and stock transaction has been valued at $27.75 per WBD share.
The closing has been expected to take place following the previously announced spin-off of WBD’s Global Networks division, Discovery Global, into an independently listed company, now set for Q3 2026.
The company has said it has planned to retain Warner Bros.’ existing operations, including theatrical releases for its film slate. Netflix has stated that the acquisition has been intended to expand its content library and studio footprint while growing its global entertainment offering.
The boards of both companies have unanimously approved the transaction, which has remained subject to regulatory approvals, shareholder consent and customary closing conditions. Netflix has also expected to realise cost synergies by the third year post-close.
“Our mission has always been to entertain the world,” said Ted Sarandos, co-CEO of Netflix. “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.”
“This acquisition will improve our offering and accelerate our business for decades to come,” continued Greg Peters, co-CEO of Netflix. “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.”
“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,” said David Zaslav, President and CEO of Warner Bros. Discovery. “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.”
