Netflix has announced one of the biggest entertainment deals ever. The company will acquire Warner Bros. for a total enterprise value of $82.7 billion. The equity value of the deal is $72 billion. This acquisition will take place after Warner Bros. Discovery completes the separation of its Global Networks division, Discovery Global, in Q3 2026.
After the acquisition, Netflix will take control of Warner Bros.’ legendary film and TV studios, HBO, and HBO Max. This includes some of the most iconic franchises ever made. Titles like Game of Thrones, The Big Bang Theory, The Sopranos, the DC Universe, Harry Potter, and classic films such as The Wizard of Oz will become part of Netflix’s content library.
Netflix says it will keep Warner Bros.’ current operations as they are. This means theatrical releases will continue, and the company will operate the studio as part of its larger content strategy.
By adding Warner Bros.’ huge library to its platform, Netflix wants to give viewers more high-quality content than ever before. The company says the combined catalog will offer better value and more choice for consumers. This also gives Netflix the ability to improve its content plans, attract more users, and keep them engaged for longer.
With access to Warner Bros.’ production capabilities, Netflix plans to expand its U.S. production capacity and invest more in original content. The company says this will also create opportunities for creators to work with big franchises and reach a global audience.
According to Netflix, the combined company will generate strong shareholder value. Netflix expects $2–3 billion in annual cost savings within three years of the deal closing. The company also expects the acquisition to increase its earnings per share by the second year.
Each Warner Bros. Discovery (WBD) shareholder will receive $23.25 in cash and $4.50 in Netflix stock for each WBD share. This values WBD at $27.75 per share.
The stock portion is tied to a price collar. If Netflix’s stock price stays between $97.91 and $119.67 (based on a 15-day VWAP before closing), WBD shareholders will receive Netflix stock worth $4.50. If the price moves outside this range, the number of shares adjusts accordingly.
The deal will close only after Discovery Global becomes a separate publicly traded company. Discovery Global will include CNN, TNT Sports, Discovery channels across Europe, and digital platforms like Discovery+ and Bleacher Report.
The acquisition also needs regulatory approvals and approval from WBD shareholders. Both company boards have already approved the deal. It is expected to close within 12–18 months.
This deal shows a major change in the entertainment world. Netflix will gain control of some of the most famous brands and franchises in film and television. For consumers, it means access to more premium content in one place..
