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Netflix has announced a historic agreement to acquire Warner Bros. from Warner Bros. Discovery (WBD) in a transaction valued at $82.7 billion in enterprise value and $72 billion in equity.
The merger, revealed on December 5, 2025, marks one of the largest entertainment industry deals ever and is expected to reshape Hollywood’s global streaming and content landscape.
According to the announcement, Netflix will purchase Warner Bros., including its iconic film and television studios, HBO, and HBO Max, following WBD’s planned separation of its Global Networks division into a new publicly traded company known as Discovery Global.
The separation is projected to be completed in the third quarter of 2026, just before the acquisition closes.
Under the terms of the deal, shareholders of WBD will receive $23.25 in cash and $4.50 in Netflix stock per share, subject to a price collar.
This structure places the acquisition value at $27.75 per share. The boards of both Netflix and WBD have unanimously approved the deal, which still awaits regulatory and shareholder approvals.
Netflix described the acquisition as a transformative step combining its worldwide streaming leadership with Warner Bros.’ century-long legacy of storytelling.
Once complete, Netflix will gain control of some of Hollywood’s most treasured franchises, including Harry Potter, DC Universe, The Sopranos, Game of Thrones, Friends, and timeless classics like Casablanca and Citizen Kane. These will join Netflix originals such as Stranger Things, Wednesday, Squid Game, and Money Heist.
Co-CEO of Netflix, Ted Sarandos, said the merger would allow the company to “entertain the world” more efficiently by pairing Warner Bros.’ extensive library with Netflix’s global reach and innovation. Fellow co-CEO Greg Peters added that the deal would unlock decades of value, strengthen U.S. production capacity, and expand Netflix’s original content investment.
WBD CEO David Zaslav praised the merger as a union of “two of the greatest storytelling companies in the world,” noting that Warner Bros.’ legacy would continue to thrive under Netflix.
Netflix stated it will maintain Warner Bros.’ current operations, including theatrical film releases, as it works to integrate the company’s studios and brands.
The merger is expected to generate $2–3 billion in cost savings within the first three years and become accretive to Netflix’s earnings by the second year.
The acquisition is also expected to create more opportunities for filmmakers, producers, and creative talent as Netflix gains access to Warner Bros.’ beloved intellectual property and production foundation. For Netflix subscribers, the deal promises broader viewing choices and enhanced entertainment value.
Following the Discovery Global separation, the remaining networks business home to brands such as CNN, TNT Sports, and Discovery channels will form a standalone public company. Meanwhile, Netflix will take ownership of the studios and streaming assets.
Both companies emphasized that forward-looking statements in the announcement remain subject to risks, including regulatory scrutiny, market shifts, and potential delays in completing the merger. If approved, the industry-shaping transaction is expected to close within 12 to 18 months.
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