HOLLYWOOD, Calif. (Chatnewstv.com) — Netflix announced Friday it will acquire Warner Bros., including its storied film and television studios, HBO Max and HBO, for a total enterprise value of approximately $82.7 billion, following the previously announced separation of Warner Bros. Discovery’s Global Networks division.
The cash and stock transaction, which values the combined Warner Bros. Discovery at $27.75 per share, is contingent on the separation of the Global Networks business, which will form a new publicly traded company, Discovery Global. That separation is now expected to be completed in the third quarter of 2026.
The acquisition is set to bring together Warner Bros.’ classic library and blockbuster franchises, such as Game of Thrones, The Big Bang Theory, and the DC Universe, with Netflix’s modern streaming portfolio, including hits like Wednesday and Stranger Things.
Historic Union
Executives from both companies touted the deal as a boon for consumers, the creative community, and shareholders.
“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… we’ll be able to do that even better.”
Netflix co-CEO Greg Peters emphasized the strategic value, noting that the combination would “accelerate our business for decades to come.”
“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,” Peters said.
Warner Bros. Discovery President and CEO David Zaslav said the merger unites “two of the greatest storytelling companies in the world.”
“By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come,” Zaslav said.
Transaction Details
Under the terms of the agreement, Warner Bros. Discovery shareholders will receive $23.25 in cash and $4.50 in Netflix common stock for each share of WBD common stock, totaling an equity value of about $72.0 billion. The stock component is subject to a collar designed to stabilize the value based on Netflix’s stock price.
Netflix stated it expects to realize at least $2 billion to $3 billion in cost savings annually by the third year and anticipates the transaction will boost GAAP earnings per share by year two.
Netflix plans to maintain Warner Bros.’ current operations, including the theatrical releases of its films. The company also projected the acquisition would enhance its studio capabilities, significantly expanding U.S. production capacity and increasing investment in original content.
The transaction has been unanimously approved by the boards of directors of both companies. Its completion is subject to regulatory approvals, WBD shareholder approval, and the prior separation of the Global Networks division, Discovery Global, which will encompass CNN, TNT Sports in the U.S., Discovery’s international channels, and products like Discovery+ and Bleacher Report.
The companies expect the deal to close in 12 to 18 months.
