Netflix has agreed to purchase Warner Bros. from Warner Bros. Discovery, Inc. (WBD) in a deal valuing the legendary studio at an enterprise value of $82.7 billion, the companies confirmed on Friday. The transaction, structured as a cash-and-stock arrangement worth $27.75 per WBD share, is expected to close once WBD completes the planned separation of its Global Networks division, Discovery Global, in Q3 2026.
Announced in Hollywood, the move marks one of the most significant shake-ups in the entertainment sector in years, bringing together Netflix’s worldwide streaming reach and Warner Bros.’ century-old archive of major films and television series. Under the agreement, Netflix will assume ownership of Warner Bros.’ film and television studios, HBO Max and HBO.
Executives from both companies said the combination would expand consumer choice and deliver stronger long-term value. Ted Sarandos, co-CEO of Netflix, said: “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.”
Greg Peters, co-CEO of Netflix, added: “This acquisition will improve our offering and accelerate our business for decades to come… With our global reach and proven business model, we can introduce a broader audience to the worlds they create—giving our members more options, attracting more fans to our best-in-class streaming service, strengthening the entire entertainment industry and creating more value for shareholders.”
WBD President and CEO David Zaslav said the move would expand the reach of some of the world’s most recognisable franchises. “Today’s announcement combines two of the greatest storytelling companies in the world… By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come.”
Netflix plans to maintain Warner Bros.’ operational structure, including theatrical film releases. The company expects the merger to support increased U.S. production, create new opportunities for talent and deliver between $2–3 billion in annual cost savings by the third year. The deal has been unanimously approved by both companies’ boards but remains subject to regulatory and shareholder approval.
WBD’s upcoming split will see Discovery Global formed as a standalone company housing major TV brands including CNN, TNT Sports and Discovery. The stock element of the Netflix transaction includes a valuation collar tied to the 15-day volume-weighted average price of Netflix shares before closing.
