Netflix to Acquire Warner Bros. and HBO in US$82.7 Billion Deal

Netflix  and Warner Bros. Discovery (WBD) announced a definitive agreement for Netflix to acquire Warner Bros. film and television studios, HBO, and HBO Max. The deal values the enterprise at roughly US$82.7 billion and  is contingent on WBD completing the previously announced spinoff of its Discovery Global division, the companies said in a joint statement.

The transaction seeks to merge Warner Bros.’ century-old production heritage and vast intellectual property catalog with Netflix’s global scale and distribution capabilities. Executives framed the move as a strategic step to unlock significant operational and financial synergies.

"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,” said Greg Peters, co-CEO, Netflix. “With our global reach and proven business model, we can introduce a broader audience to the worlds they create [...] strengthening the entire entertainment industry and creating more value for shareholders."

The acquisition follows WBD’s decision in June 2025 to split into two independent public entities—one dedicated to studios and streaming, and another focused on linear networks. Netflix will take over the studios and premium platform division once the separation concludes, currently set for 3Q26.

The new standalone company, Discovery Global, will retain assets such as CNN, TNT Sports in the United States, various European free-to-air channels, and digital brands including Bleacher Report. Netflix, for its part, will gain control of major franchises such as Game of Thrones, the DC Universe and Harry Potter, while expanding its US production footprint and maintaining Warner Bros.’ theatrical business.

The financial package combines cash and stock. WBD shareholders will receive US$27.75 per share, valuing equity at about US$72 billion. The payment includes US$23.25 in cash plus US$4.50 in Netflix stock per share. The stock component is tied to a collar mechanism based on Netflix’s 15-day VWAP prior to closing, with ratios adjusting if the stock moves outside the US$97.91–US$119.67 range.

Netflix expects the integration to produce annual cost savings of US$2–3 billion by the third year post-closing and forecasts the deal will become accretive to GAAP earnings per share in year two. The company plans to preserve Warner Bros.’ theatrical operations as part of a broadened content strategy.

Closing is expected within 12–18 months, subject to WBD shareholder approval, completion of the Discovery Global spinoff and regulatory review. Both boards approved the agreement unanimously.

Netflix was advised by Moelis & Company LLC, Wells Fargo, BNP and HSBC, with the latter three providing debt financing. Skadden, Arps, Slate, Meagher & Flom LLP served as legal counsel. WBD received financial advice from Allen & Company, J.P. Morgan and Evercore, and legal counsel from Wachtell, Lipton, Rosen & Katz and Debevoise & Plimpton LLP.