Netflix announced on December 5, 2025, that it has entered into a definitive agreement to acquire Warner Bros., including its legendary film and television studios, HBO, and the HBO Max streaming service, from Warner Bros. Discovery. The deal comes as Warner Bros. Discovery prepares to spin off its Global Networks division (which includes Discovery Channel, HGTV, Food Network, and other cable networks) into a separate publicly traded company later in 2026.The transaction values the Warner Bros. business at an enterprise value of $82.7 billion, or $72 billion in equity value. Warner Bros. Discovery shareholders will receive $27.75 per share, consisting of $23.25 in cash and $4.50 worth of Netflix stock, though the exact number of Netflix shares will adjust depending on Netflix’s share price near closing to stay within a predetermined range.The acquisition is expected to close sometime between mid-2026 and early 2027, after the Discovery spin-off is completed and once regulators and Warner Bros. Discovery shareholders approve the deal. Both companies’ boards have already unanimously approved the transaction.By bringing together Netflix’s global streaming platform and original content powerhouse with Warner Bros.’ vast library and production capabilities, the combined company believes it will create the world’s leading entertainment company. Iconic franchises and titles such as Game of Thrones, The Sopranos, the DC Universe, Harry Potter, Friends, Casablanca, and The Wizard of Oz will sit alongside Netflix originals like Stranger Things, Squid Game, and The Crown under one roof.Netflix expects the deal to generate $2–3 billion in annual cost savings by the third year after closing and to be accretive to its earnings per share by the second year. Warner Bros. will continue operating its theatrical film business and existing operations as usual.Ted Sarandos and Greg Peters, Netflix’s co-CEOs, described the combination as a once-in-a-century opportunity to pair Warner Bros.’ unmatched storytelling legacy with Netflix’s global reach and technology, giving audiences more of the stories they love. David Zaslav, CEO of Warner Bros. Discovery, called it a perfect home for Warner Bros.’ content and a way to ensure its iconic stories continue to reach audiences worldwide for generations.With this move, Netflix significantly strengthens its position in the streaming wars by adding one of the largest and most prestigious content libraries in entertainment history to its service.
Netflix Acquire Warner Bros., HBO, and HBO Max in $82.7 Billion Deal
