Netflix has announced entering agreement to acquire Warner Bros. from Warner Bros. Discovery in a deal valued at $82.7 billion, marking one of the largest consolidation moves in the entertainment industry and a major shift for the world’s largest streaming platform.
The companies announced the agreement on Friday, confirming months of speculation about a potential sale.
Under the cash-and-stock arrangement, each Warner Bros. Discovery shareholder will receive $23.25 in cash and $4.50 in Netflix stock per share, valuing the company at $72 billion in equity.
The deal is contingent on Warner Bros. Discovery’s previously announced plan to separate its Global Networks division into a new publicly traded company, Discovery Global, a process now expected to be completed in the third quarter of 2026.
The acquisition would bring Netflix, originally a mail-order DVD service, into full ownership of a legacy Hollywood studio for the first time.
Warner Bros., founded in the 1920s, owns some of the most influential film and television titles in American culture, including Casablanca, The Wizard of Oz, The Sopranos, Harry Potter and the DC Universe. HBO and HBO Max, also part of the deal, would shift to a Netflix-controlled structure after the transaction closes.
The company said it intends to expand its production footprint in the U.S. and use Warner Bros.’ established capabilities to bolster its global slate of original programming.
Executives from both companies portrayed the move as a strategic alignment of strengths.
“Our mission has always been to entertain the world,” said Ted Sarandos, co-CEO of Netflix. “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.”
According to Greg Peters, co-CEO of Netflix,
“This acquisition will improve our offering and accelerate our business for decades to come. Warner Bros. has helped define entertainment for more than a century and continues to do so with phenomenal creative executives and production capabilities.
“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,”.
The move comes at a volatile moment for the entertainment sector. Traditional TV networks, including many that will move to Discovery Global, continue to lose subscribers, while streaming platforms face mounting competition and rising production costs. Warner Bros. Discovery announced its corporate split earlier this year as part of an effort to simplify operations and address declining revenue in its cable business.
The transaction will undergo extensive regulatory scrutiny in the United States and abroad. A combined Netflix-Warner Bros. entity would command vast market power in premium scripted entertainment, raising likely antitrust concerns, particularly around global streaming dominance.
The companies expect the review process, along with shareholder approvals and the Discovery Global separation, to take between 12 and 18 months.
Financial advisors for the deal include Moelis & Company for Netflix and Allen & Company, J.P. Morgan and Evercore for Warner Bros. Discovery. The companies indicated they expect cost efficiencies over time, though details on potential restructuring were not provided.
Financial advisors for the deal include Moelis & Company for Netflix and Allen & Company, J.P. Morgan and Evercore for Warner Bros. Discovery. The companies indicated they expect cost efficiencies over time, though details on potential restructuring were not provided.