Two major names in entertainment and streaming are set to join forces with Netflix’s Friday morning announcement that it’s entered into an agreement to acquire Warner Bros. in a deal worth about $82.7 billion.
The transaction includes Warner Bros.’ film and television studios, HBO and HBO Max, and Netflix anticipates the move will expand access to content for its viewers and create new opportunities for talent. Although it plans to maintain Warner Bros.’ current operations, Netflix will be enhancing studio capabilities and boosting U.S. production capacity to support long-term investment in original content.
“Our mission has always been to entertain the world. 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, KPop Demon Hunters and Squid Game, we'll be able to do that even better. Together, we can give audiences more of what they love and help define the next century of storytelling,” Netflix co-CEO Ted Sarandos said in a statement.
Earlier this year, Warner Bros. Discovery announced that it would be separating into two publicly traded companies — one encompassing its Streaming & Studios division and the other its Global Networks division. That separation is expected to be complete in the third quarter of 2026, and the Netflix acquisition will follow.
Under the terms of the acquisition, Warner Bros. Discovery’s shareholders will receive $23.25 in cash and $4.50 in Netflix common stock, valuing each WBD share at $27.75. That puts the enterprise value of the deal at approximately $82.7 billion, or an equity value of roughly $72 billion.
