Netflix, Inc. and Warner Bros. Discovery, Inc. announced on December 5, 2025 that they have entered into an agreement under which Netflix will acquire Warner Bros., including its film and television studios, HBO Max and HBO.
The cash and stock transaction is valued at $27.75 per WBD share, with a total enterprise value of approximately $82.7 billion and an equity value of $72.0 billion.
Under the terms of the agreement, each WBD shareholder will receive $23.25 in cash and $4.50 in shares of Netflix common stock for each share of WBD common stock at closing.
Netflix announces $82.7 billion acquisition of Warner Bros. Studios, HBO Max
The stock component is subject to a collar under which WBD shareholders will receive Netflix stock valued at $4.50 per share, provided the 15-day volume weighted average price of Netflix stock falls between $97.91 and $119.67, measured three trading days prior to closing.
If the VWAP is below $97.91, WBD shareholders will receive 0.0460 Netflix shares for each WBD share. If the VWAP is above $119.67, WBD shareholders will receive 0.0376 Netflix shares for each WBD share.
The transaction is expected to close after the separation of WBD’s Global Networks division, Discovery Global, into a new publicly-traded company, now expected to be completed in Q3 2026. The acquisition is expected to close in 12 to 18 months following this separation.
Completion of the transaction is subject to required regulatory approvals, approval of WBD shareholders and other customary closing conditions.
The acquisition will combine Warner Bros.’ franchises and libraries with Netflix’s streaming service. Properties including The Big Bang Theory, The Sopranos, Game of Thrones, The Wizard of Oz, the DC Universe, Casablanca, Citizen Kane, Harry Potter and Friends will join Netflix’s portfolio, which includes Wednesday, Money Heist, Bridgerton, Adolescence, Extraction, Stranger Things, KPop Demon Hunters and Squid Game.
“Our mission has always been to entertain the world. By combining Warner Bros.โ incredible library of shows and moviesโfrom timeless classics like Casablanca and Citizen Kane to modern favorites like Harry Potter and Friendsโwith our culture-defining titles like Stranger Things, KPop Demon Hunters and Squid Game, we’ll be able to do that even better. Together, we can give audiences more of what they love and help define the next century of storytelling,” Ted Sarandos, co-CEO of Netflix said in a statement.
Netflix expects to maintain Warner Bros.’ current operations and build on its strengths, including theatrical releases for films. The company stated that Warner Bros. is recognised as a supplier of television titles and filmed entertainment, whilst HBO and HBO Max provide an offering for consumers.
“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. With our global reach and proven business model, we can introduce a broader audience to the worlds they createโgiving our members more options, attracting more fans to our best-in-class streaming service, strengthening the entire entertainment industry and creating more value for shareholders,” Greg Peters, co-CEO of Netflix continued.
In June 2025, WBD announced plans to separate its Streaming & Studios and Global Networks divisions into two separate publicly traded companies. The newly separated publicly traded company holding the Global Networks division, Discovery Global, will include CNN, TNT Sports in the US, Discovery, free-to-air channels across Europe, and products such as Discovery+ and Bleacher Report.
“Todayโs announcement combines two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most. For more than a century, Warner Bros. has thrilled audiences, captured the worldโs attention, and shaped our culture. By coming together with Netflix, we will ensure people everywhere will continue to enjoy the worldโs most resonant stories for generations to come,” David Zaslav, President and CEO of Warner Bros. Discovery said.
Netflix expects to attract and retain more members, drive more engagement and generate revenue and operating income through the acquisition. The company expects to realise at least $2 billion to $3 billion of cost savings per year by the third year and expects the transaction to be accretive to GAAP earnings per share by year two.
The acquisition will enhance Netflix’s studio capabilities, allowing the company to expand US production capacity and continue to grow investment in content over the long term, which will create jobs.
Moelis & Company LLC is acting as Netflix’s financial adviser and Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel. Wells Fargo is acting as an additional financial adviser and, along with BNP and HSBC, is providing committed debt financing related to the transaction.
Allen & Company, J.P. Morgan and Evercore are serving as financial advisers to Warner Bros. Discovery and Wachtell Lipton, Rosen & Katz and Debevoise & Plimpton LLP are serving as legal counsel.
