Netflix and Warner Bros Discovery (WBD) at this time introduced that they’ve entered right into a definitive settlement underneath which Netflix will purchase Warner Bros, together with its movie and tv studios, HBO and HBO Max, in a cash-and-stock deal valued at USD 27.75 per WBD share.
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Settlement Between Netflix and WBD
The transaction displays an fairness worth of roughly USD 72 billion and an enterprise worth of about USD 82.7 billion. The acquisition is anticipated to shut following the beforehand introduced separation of WBD’s International Networks division—Discovery International—into a brand new publicly-traded firm, now slated for completion within the third quarter of 2026.
The settlement brings collectively Netflix’s world streaming scale and technological infrastructure with Warner Bros’ century-long legacy of storytelling and franchises. Properties akin to The Huge Bang Idea, The Sopranos, Recreation of Thrones, The Wizard of Oz, and the DC Universe will be a part of Netflix’s catalogue, alongside its unique hits together with Wednesday, Cash Heist, and Bridgerton.
Govt Reactions to the Merger
Netflix executives stated the mixture will broaden its providing, deepen its library and improve viewers engagement worldwide.
“Our mission has at all times been to entertain the world,” stated Ted Sarandos, co-CEO of Netflix. “By combining Warner Bros’ unbelievable library of exhibits and films—from timeless classics like Casablanca and Citizen Kane to trendy favorites like Harry Potter and Mates—with our culture-defining titles like Stranger Issues, KPop Demon Hunters and Squid Recreation, we’ll be capable of try this even higher. Collectively, we can provide audiences extra of what they love and assist outline the following century of storytelling.”
“This acquisition will enhance our providing and speed up our enterprise for many years to come back,” continued Greg Peters, co-CEO of Netflix. “Warner Bros. has helped outline leisure for greater than a century and continues to take action with phenomenal inventive executives and manufacturing capabilities. With our world attain and confirmed enterprise mannequin, we will introduce a broader viewers to the worlds they create—giving our members extra choices, attracting extra followers to our best-in-class streaming service, strengthening your complete leisure business and creating extra worth for shareholders.”
“At present’s announcement combines two of the best storytelling corporations on this planet to convey to much more folks the leisure they love to look at essentially the most,” stated David Zaslav, President and CEO of Warner Bros. Discovery. “For greater than a century, Warner Bros. has thrilled audiences, captured the world’s consideration, and formed our tradition. By coming along with Netflix, we are going to guarantee folks in all places will proceed to benefit from the world’s most resonant tales for generations to come back.”
Operational Plans and Future Technique
Below the phrases of the transaction, WBD shareholders will obtain USD 23.25 in money and USD 4.50 in Netflix inventory for every WBD share at closing.
WBD’s International Networks division—together with CNN, TNT Sports activities within the US, Discovery, free-to-air channels throughout Europe, and digital companies akin to Discovery+ and Bleacher Report—will probably be spun off into a brand new publicly traded firm, Discovery International, previous to the transaction’s completion. In June 2025, WBD introduced plans to separate its Streaming and Studios and International Networks divisions into two separate publicly traded corporations.
Warner Bros’ studios, HBO and HBO Max will transition to Netflix, which stated it intends to keep up the studio’s present operations, together with theatrical releases.
Netflix expects the merger to generate USD 2 billion to USD 3 billion in annual price financial savings by the third yr and to be accretive to GAAP earnings per share by yr two. In keeping with the official launch, the acquisition will develop alternatives for creators, strengthen the leisure business and ship better worth for shoppers and shareholders.
The boards of each corporations unanimously authorised the deal. Closing stays topic to regulatory approvals, WBD shareholder consent, completion of the Discovery International spin-off and different customary situations. Assuming approvals are secured, the transaction is anticipated to finalize inside 12 to 18 months after the separation of Discovery International.
