HOLLYWOOD, Calif. — Netflix has reached a definitive agreement to acquire Warner Bros. from Warner Bros. Discovery in a deal valued at about $82.7 billion, the companies announced Friday. The transaction would unite one of Hollywood’s oldest studios and its iconic franchises with the world’s largest streaming service.
The cash-and-stock deal values Warner Bros. Discovery at $27.75 per share and is expected to close 12 to 18 months after WBD completes its planned spinoff of its Global Networks division, now slated for the third quarter of 2026. The separation will create a new public company, Discovery Global, housing brands including CNN, TNT Sports, Discovery’s international channels and digital platforms such as Discovery+ and Bleacher Report.
If approved by regulators and WBD shareholders, the acquisition would bring Warner Bros.’ film and television studios, HBO and HBO Max under Netflix’s umbrella—significantly expanding Netflix’s content library and production capabilities.
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“Our mission has always been to entertain the world,” Netflix co-CEO Ted Sarandos said in a statement. “By combining Warner Bros.’ incredible library of shows and movies with our culture-defining titles, we’ll be able to do that even better.”
Netflix highlighted Warner Bros.’ extensive catalog—from Casablanca and Citizen Kane to Harry Potter, Friends, The Sopranos and the DC Universe—as a key asset. The companies said the merger would give consumers more choice, expand opportunities for creators and bolster the entertainment industry.
Greg Peters, Netflix’s other co-CEO, said the combination would strengthen Netflix’s business “for decades to come” and broaden the global audience for Warner Bros.’ properties. David Zaslav, CEO of Warner Bros. Discovery, called the deal a union of “two of the greatest storytelling companies in the world.”
Netflix said it expects to maintain Warner Bros.’ current operations, including theatrical film releases, and forecast $2 billion to $3 billion in annual cost savings by the third year after closing. The company said it anticipates the deal will be accretive to earnings per share by year two.
Under the terms, WBD shareholders will receive $23.25 in cash and $4.50 in Netflix stock for each WBD share, subject to a pricing collar tied to Netflix’s trading levels before closing. The boards of both companies have unanimously approved the deal.
Financial advisors on the transaction include Moelis & Company for Netflix and Allen & Company, J.P. Morgan and Evercore for WBD. Legal counsel includes Skadden, Arps, Slate, Meagher & Flom for Netflix and Wachtell Lipton Rosen & Katz and Debevoise & Plimpton for WBD.
The agreement marks one of the largest entertainment mergers in history and positions Netflix to wield unprecedented influence over Hollywood’s future—pending what is likely to be significant regulatory scrutiny.