Netflix has announced a historic agreement to acquire Warner Bros. from Warner Bros. Discovery (WBD) in a deal valued at an enterprise total of $82.7 billion, marking one of the largest entertainment mergers ever attempted. The transaction, which includes Warner Bros.’ film and television studios, HBO, and HBO Max, will only proceed following WBD’s planned separation of its Global Networks division into a standalone company called Discovery Global. That split is slated for completion in the third quarter of 2026, with the acquisition closing soon after pending regulatory and shareholder approvals.
The deal represents a seismic shift in the global media landscape. By combining Warner Bros.’ century-long storytelling legacy with Netflix’s international subscriber base and technological reach, the unified company would control some of the most valuable franchises and film libraries in history. Warner Bros. properties including Game of Thrones, The Sopranos, DC Universe titles, Harry Potter, Friends, and classic films like The Wizard of Oz will join Netflix’s portfolio, which features global hits such as Stranger Things, Bridgerton, Squid Game and Wednesday. Netflix has stated it plans to maintain Warner Bros.’ existing operations, including theatrical releases, while expanding production capacity and strengthening its long-term content strategy.
Netflix co-CEOs Ted Sarandos and Greg Peters described the merger as a transformational moment for global entertainment. Speaking to investors, Sarandos said the combined catalog will allow Netflix to “entertain the world even better,” while Peters emphasized that the deal will increase value for both consumers and shareholders. Netflix expects the acquisition to offer viewers more choice at greater value, broaden opportunities for creators, and deliver between $2 to $3 billion in annual cost savings by the third year. The company also anticipates the deal will become accretive to its GAAP earnings by year two.
Under the agreement, WBD shareholders will receive $23.25 in cash and $4.50 in Netflix stock per share, subject to a pricing collar. The structure values WBD at $27.75 per share, with an equity valuation of $72 billion. Prior to the merger, WBD will spin off Discovery Global, which includes major broadcast and cable properties such as CNN, TNT Sports, Discovery Channel, and digital brands like Discovery+ and Bleacher Report. This newly public company will not be part of the Netflix acquisition but will continue to operate independently.
The transaction has been unanimously approved by both companies’ boards and now moves into a lengthy regulatory review, given the merger’s potential impact on competitive dynamics across Hollywood, streaming platforms and global media distribution. Financial giants including Moelis, Wells Fargo, BNP, HSBC, Allen & Company and J.P. Morgan are supporting various components of the deal. Legal counsel is being provided by industry-leading firms including Skadden, Wachtell Lipton, and Debevoise & Plimpton.
Netflix will hold a webcast to discuss the transaction and address investor questions. Meanwhile, securities regulators will review detailed filings including a proxy statement and registration documents outlining the full implications of the merger. Both companies caution that forward-looking statements carry risks and uncertainties ranging from integration challenges to potential regulatory obstacles, market shifts and litigation.
If finalized, the acquisition will reshape the power structure of global entertainment, uniting two storied content giants under one streaming-first umbrella and redefining what audiences can expect from the world’s largest entertainment brands.
