Streaming powerhouse Netflix announced Friday a definitive agreement to acquire the film and television studios of Warner Bros Discovery, along with its HBO and HBO Max operations, in a cash-and-stock transaction valued at around $82.7 billion including debt, marking the largest media consolidation since Disney’s 2019 purchase of Fox assets.
The deal, unanimously approved by both companies’ boards, values Warner Bros at $27.75 per share – comprising $23.25 in cash and $4.50 in Netflix stock – for an equity value of approximately $72 billion. It follows a fierce bidding war that saw Netflix outpace rivals including Paramount Skydance and Comcast.
“This acquisition brings together two pioneering entertainment businesses, combining Netflix’s innovation, global reach and best-in-class streaming service with Warner Bros.’ century-long legacy of world-class storytelling,” the companies said in a joint statement.
Ted Sarandos, Netflix co-chief executive, hailed the merger’s potential: “Together, we can give audiences more of what they love and help define the next century of storytelling.”
David Zaslav, president and chief executive of Warner Bros Discovery, added: “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.”
The transaction will integrate iconic franchises such as Harry Potter, Batman, Game of Thrones and The Sopranos into Netflix’s platform, bolstering its library against competitors like Disney+ and Amazon Prime Video.
Closing is anticipated in the third quarter of 2026, contingent on Warner Bros Discovery completing its planned spin-off of cable networks including CNN and TNT into a separate entity dubbed Discovery Global, as well as regulatory and shareholder approvals.
Netflix has pledged to maintain Warner Bros’ theatrical release commitments, aiming to ease concerns from cinema owners and guilds over reduced competition.
The agreement includes significant break-up fees – $5.8 billion payable by Netflix if the deal fails, and $2.8 billion from Warner Bros Discovery.
Industry observers warn of intense antitrust scrutiny, with critics arguing the merger could dominate streaming and limit choices. Former Warner executive Jason Kilar posted on social media: “I could not think of a more effective way to reduce competition in Hollywood than selling WBD to Netflix.”
Netflix shares dipped slightly in early trading, while Warner Bros Discovery stock rose on the news.
The deal caps months of speculation around Warner Bros Discovery’s future amid streaming pressures and debt burdens, cementing Netflix’s evolution from disruptor to Hollywood titan.
