Netflix to buy Warner Bros for $82.7bn
Netflix agrees cash-and-stock deal for Warner Bros. after Discovery Global spin-off, valuing the business at $82.7 billion including debt.
Netflix Inc has agreed to acquire Warner Bros in a cash-and-stock deal that values the Hollywood business at an enterprise value of about $82.7 billion and an equity value of $72.0 billion
The streamer's deal with Warner Bros Discovery sees it picking up Warner Bros’ film and television studios, HBO and HBO Max.
According to the statement, the transaction is expected to close 12 to 18 months after the planned separation of WBD’s Global Networks division into a new listed company called Discovery Global, a move now targeted for completion in the third quarter of 2026.
Every WBD shareholder will receive $23.25 in cash and $4.50 in Netflix stock for each WBD share they hold, valuing WBD at $27.75 per share.
Netflix said it plans to keep Warner Bros’ current operations, including theatrical film releases, and expects at least $2 billion to $3 billion in annual cost savings by the third year, with the deal projected to be accretive to GAAP earnings per share by year two.
The combination will bring franchises such as The Big Bang Theory, The Sopranos, Game of Thrones, The Wizard of Oz and the DC Universe together with Netflix titles including Wednesday, Money Heist and Bridgerton.
“By combining Warner Bros’ incredible library of shows and movies … with our culture-defining titles like Stranger Things, KPop Demon Hunters and Squid Game, we'll be able to do that even better,” Netflix co-chief executive Ted Sarandos said, while WBD chief executive David Zaslav said the deal “combines two of the greatest storytelling companies in the world.”
The boards of both companies have unanimously approved the merger, which remains subject to regulatory clearances, WBD shareholder approval, completion of the Discovery Global spin-off and other customary conditions.
The recap
- Netflix to acquire Warner Bros from WBD in cash-and-stock deal.
- Transaction values Warner Bros at $72 billion equity, $82.7 billion enterprise.
- Closing expected 12–18 months after Discovery Global spin-off completes.
