Netflix Moves to Acquire Warner Bros. in Landmark $82.7 Billion Deal

Netflix has reached an agreement to acquire Warner Bros. from Warner Bros. Discovery in a transaction valued at $82.7 billion—one of the largest entertainment mergers in modern history and a major strategic leap for the world’s biggest streaming platform.

The companies confirmed the deal on Friday, ending months of speculation. Under the cash-and-stock arrangement, Warner Bros. Discovery shareholders will receive $23.25 in cash and $4.50 worth of Netflix stock per share, valuing WBD’s equity at about $72 billion.

The acquisition depends on the completion of Warner Bros. Discovery’s planned separation of its Global Networks division into a new publicly traded company, Discovery Global. The separation is expected to be finalised in the third quarter of 2026.

If approved, the deal will put the century-old Hollywood studio—home to Casablanca, The Wizard of Oz, The Sopranos, Harry Potter and the DC Universe—under Netflix’s control for the first time. HBO and HBO Max would also be folded into Netflix’s operational structure. Netflix says it plans to expand its U.S. production capacity and integrate Warner Bros.’ creative expertise into its global content pipeline.

Ted Sarandos, Netflix co-CEO, said the acquisition strengthens the company’s mission to entertain global audiences, noting that combining Warner Bros.’ legendary catalogue with Netflix’s hit series will give viewers “more of what they love” and help shape “the next century of storytelling.”

Co-CEO Greg Peters described the deal as transformative, saying Netflix’s global distribution network will introduce Warner Bros.’ creative worlds to a broader audience while boosting shareholder value.

The merger comes during a turbulent period for the entertainment industry, as traditional TV networks lose subscribers and streaming platforms face rising production costs and stiff competition. Regulators in the U.S. and other markets are expected to scrutinise the deal closely because of the combined company’s dominance in premium scripted entertainment and global streaming markets.

The entire approval and restructuring process—including shareholder votes and the Discovery Global separation—is expected to take 12 to 18 months. Financial advisors include Moelis & Company for Netflix and Allen & Company, J.P. Morgan and Evercore for Warner Bros. Discovery.