Netflix Announces $82.7 Billion Acquisition of Warner Bros. Discovery

Netflix (NFLX) has agreed to acquire Warner Bros. Discovery (WBD) in one of the largest entertainment deals ever, valued at ~$82.7 billion in enterprise value. The transaction includes Warner Bros.’ film and TV studios, HBO and HBO Max, and WBD’s extensive library of global franchises.

Deal Structure & Financial Terms

Netflix will purchase WBD for $27.75 per share, valuing the equity at ~$72 billion.
Each WBD shareholder will receive:
- $23.25 in cash
- $4.501 in Netflix common stock per WBD share
Netflix will maintain Warner Bros.’ existing operations after the acquisition.
A previously announced spin-off of WBD’s Global Networks division into Discovery Global must be completed first, expected in Q3 2026.
The merger is expected to close within 12–18 months.

Breakup Fees

Netflix will pay WBD a $5.8B termination fee if the deal is not completed.
WBD must pay Netflix $2.8B if the merger fails under certain conditions.

Strategic Impact on the Streaming Landscape

A Transformational Content Powerhouse

The combined companies will unite globally recognized franchises under one umbrella, including:

The Big Bang Theory
The Sopranos
Game of Thrones
The Wizard of Oz
DC Universe

These will join Netflix’s blockbuster slate such as Wednesday, Money Heist, Bridgerton, Adolescence, and Extraction—creating one of the deepest content libraries in the world.

Netflix said the combined portfolio represents an “extraordinary entertainment offering” and opens the door to new bundled subscription models aimed at reducing consumer costs.

Why WBD Chose to Sell

Warner Bros. Discovery initiated the sale process in October amid:

Mounting financial pressures
Long-term debt constraints
Underperformance in streaming profitability

The process was contentious, with Paramount Skydance (PSKY) alleging that WBD favored Netflix’s bid over its own competing offers, questioning the fairness of the proceedings.

Market Reaction

WBD shares rose 1.8% in premarket trading.
Netflix shares fell 2.9%, reflecting investor uncertainty around deal size and integration risks.

If completed, the acquisition positions Netflix as the undisputed global leader in streaming by absorbing one of its most prominent rivals.