Netflix to acquire Warner Bros in $82.7-billion deal

NetflixI Inc and Warner Bros Discovery Inc (WBD) on Friday, December 5, announced a definitive agreement for Netflix to acquire Warner Bros, including its film and television studios, HBO Max and HBO,

in a cash-and-stock deal valuing WBD at $27.75 per share. The transaction carries a total enterprise value of about $82.7 billion and an equity value of $72.0 billion.

The companies said the acquisition is expected to close in 12-18 months, following the previously-announced separation of WBD’s Global Networks division into a new publicly traded entity called Discovery Global. That separation is now expected to be completed in Q32026.

Under the agreement, WBD shareholders will receive $23.25 in cash and $4.501 in Netflix stock per share. The stock portion is subject to a collar based on Netflix’s 15-day volume-weighted average price before closing, with specific exchange ratios applying if the VWAP falls below $97.91 or rises above $119.67.

Ahead of the transaction, WBD will spin off Discovery Global, which will house its entertainment, sports and news networks, including CNN, TNT Sports in the US, Discovery’s free-to-air channels in Europe, and digital platforms such as Discovery+ and Bleacher Report.

The deal will unite Netflix’s global streaming service with Warner Bros' century-old library and major franchises. Titles such as The Big Bang Theory, The Sopranos, Game of Thrones, The Wizard of Oz and the DC Universe will become part of Netflix’s catalogue.

"By combining Warner Bros’ incredible library of shows and movies — from timeless classics like Casablanca and Citizen Kane to modern favourites 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," Netflix Co-CEO Ted Sarandos said. "Together, we can give audiences more of what they love and help define the next century of storytelling."

Netflix said it intends to maintain Warner Bros’ current operations, including theatrical releases. It said the combined libraries of Warner Bros, HBO and HBO Max would expand consumer choice and create more opportunities for talent. The company expects at least $2-3 billion in annual cost savings by the third year and anticipates the deal will be accretive to GAAP earnings per share by year two.

The boards of both companies have unanimously approved the deal. Advisors include Moelis & Company, Wells Fargo, BNP, HSBC and Skadden, Arps for Netflix; and Allen & Company, JP Morgan, Evercore, Wachtell Lipton, Rosen & Katz and Debevoise & Plimpton LLP for WBD.

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