Netflix Acquires Major Warner Bros. Discovery Assets in Landmark $82.7 Billion Deal

Streaming giant Netflix has officially confirmed a monumental agreement to take over crucial assets belonging to the media conglomerate Warner Bros. Discovery (WBD). This transaction, valued at an imposing $82.7 billion including assumed debt, represents a seismic shift in the global entertainment landscape. The deal received unanimous approval from the boards of directors at both organizations, marking the first time Netflix has absorbed studios of this magnitude.

The acquisition brings the venerable Warner Bros. film studio, the prestigious HBO television network, and the HBO Max streaming platform directly under the purview of Netflix. Netflix’s offer valued WBD’s equity at $72 billion, ultimately proving more compelling than competing bids from entities like Paramount Skydance and Comcast Corp. Under the agreed terms, WBD shareholders are set to receive $23.25 in cash and $4.50 in Netflix stock for every common share of WBD they hold. To back this massive undertaking, Netflix has already secured $59 billion in financing commitments from major Wall Street banks.

The finalization of this acquisition is anticipated to occur within a 12-to-18-month timeframe. This closing is contingent upon Warner Bros. Discovery successfully executing a planned separation of its cable networks—including CNN, TNT, and the Discovery Channel—into a distinct, publicly traded entity. That corporate spin-off is currently projected to be completed during the third quarter of 2026. Interestingly, Netflix co-CEO Ted Sarandos indicated that the company intends to maintain the tradition of theatrical releases for Warner Bros. films, a notable departure from Netflix’s historical stance on cinema distribution.

This strategic purchase grants Netflix immediate access to an unparalleled library of intellectual property. This includes globally recognized franchises such as Harry Potter and the expansive DC universe, alongside iconic HBO television series like Game of Thrones and The Sopranos. David Zaslav, President and CEO of Warner Bros. Discovery, expressed optimism, stating that the combination will enable the delivery of “the most compelling stories across generations to people all over the world.” Netflix CEO Greg Peters echoed this sentiment, asserting that the merger will “accelerate our business by decades” and significantly enhance the service’s overall offering.

However, such a massive consolidation of market power is not without its potential hurdles, particularly concerning regulatory scrutiny in key markets like the United States and Europe, especially given Netflix’s new control over HBO Max. Industry analysts suggest that this level of consolidation could fundamentally reshape established business models within the entertainment sector. Looking ahead, Netflix projects realizing annual cost savings ranging between $2 billion and $3 billion within three years post-closing. Should regulatory bodies ultimately block the merger, Netflix has stipulated a termination fee of $5.8 billion payable to WBD.