If Netflix can afford to spend $82.7 billion on any purchase, then perhaps its subscription rate is too high.
The global streaming service today announced its blockbuster acquisition of the Warner Bros.
film studio and popular streaming service, HBO Max. The transaction will feature a mix of both cash and stock and is valued at $27.75 per WBD share, putting the equity value of the deal at $72 billion with a total enterprise value of approximately $82.7 billion.
“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.”
Netflix got its hands on World Wrestling Entertainment (WWE) in early 2024 and continues to feature live boxing events, including the Jake Paul vs. Anthony Joshua showdown booked for Dec. 20 in Miami. There was talk of acquiring Ultimate Fighting Championship (UFC) earlier this year, but the promotion landed at Paramount instead.
“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.”
The deal is expected to be completed in third quarter 2026.
