Netflix said on Friday it has reached a definitive agreement to acquire Warner Bros. from Warner Bros. Discovery (WBD) in a cash-and-stock deal valuing the company at an enterprise value of about $82.7 billion, marking one of the largest entertainment mergers in history. The companies expect the transaction to complete after WBD finalizes the previously announced separation of its Global Networks division in the third quarter of 2026.
The acquisition would combine Netflix’s streaming scale with Warner Bros.’ extensive catalog and production capabilities, bringing franchises such as The Sopranos, Harry Potter and Game of Thrones under the Netflix umbrella. “Our mission has always been to entertain the world,” Netflix co-CEO Ted Sarandos said in the announcement, adding that integrating Warner Bros.’ library will allow the company to “give audiences more of what they love and help define the next century of storytelling.”
See also: Spotify and Netflix Partner to Bring Video Podcasts to Streaming Audiences
Executives from both companies emphasized the strategic value of the deal in expanding content, production output and streaming appeal. Netflix co-CEO Greg Peters said the merger will “accelerate our business for decades to come,” arguing that the companies’ combined global reach and intellectual property will “create more value for shareholders.” WBD chief executive David Zaslav called the agreement the union of “two of the greatest storytelling companies in the world.”
Under the terms of the agreement, each WBD shareholder will receive $23.25 in cash and $4.50 in Netflix stock per share, subject to a collar tied to Netflix’s pre-closing trading price. The companies expect the deal to generate $2–3 billion in annual cost savings by its third year and to be accretive to Netflix’s earnings per share by year two, according to the release.
See also: Netflix Removes Casting Support for Some Users Following Latest App Update
Completion of the merger is subject to regulatory approvals, WBD shareholder approval and the successful spin-off of Discovery Global, which will house networks such as CNN, TNT Sports and Discovery brands across markets. The companies said the transaction is anticipated to close within 12 to 18 months, barring delays.
Source: Netflix