Netflix acquires Warner Bros. for $82.7 billion after Discovery Global spin-off

Netflix and Warner Bros. Discovery have announced a definitive agreement under which Netflix will acquire Warner Bros. after the Discovery Global division is spun off into a separate public company. The total value of the deal is $82.7 billion, with an equity value of $72 billion.

The deal will be one of the largest in the history of the entertainment industry and will combine the world's largest streaming service with the legendary Warner Bros. studio, its film studios, television production, and HBO and HBO Max brands.

What Netflix gets:

• Warner Bros. film studio;
• television studios;
• HBO and HBO Max franchises;
• catalogues of films and series, including Game of Thrones, The Sopranos, Friends, Harry Potter, DC Universe, The Wizard of Oz, and The Big Bang Theory.

Not included in the deal are Warner Bros. Discovery's global networks (Discovery Global) — CNN, TNT Sports, Discovery, Discovery+ digital services, and Bleacher Report. These assets will be spun off into a separate public company by the third quarter of 2026.

Under the terms of the deal, each WBD shareholder will receive:

• $23.25 in cash;
• $4.5 in Netflix shares for each WBD share — as part of a “collar” depending on Netflix's market price at the time of closing.
• The value of Warner Bros. under the agreement is $27.75 per share.

The closing is expected within 12 to 18 months, following the completion of the Discovery Global spin-off and receipt of necessary regulatory approvals.

“Our mission is to entertain the world. Combining Warner Bros.' catalog with our culturally significant projects will give viewers even more of what they love and help define the next century of storytelling,” said Ted Sarandos, co-CEO of Netflix.

Greg Peters, co-CEO of Netflix, said Warner Bros. has been shaping the entertainment industry for over a century.

“This is a combination of two of the world's greatest storytellers. In partnership with Netflix, we will ensure that future generations have access to the best content,” said David Zaslav, CEO of Warner Bros. Discovery.

Netflix's financial expectations from the deal include savings of $2-3 billion per year by the third year after the deal, growth in earnings per share (GAAP) by the second year, and expansion of production capacity in the US and beyond.