Netflix and Warner Bros. Discovery (WBD) announced a blockbuster agreement on December 5, 2025, that will see Netflix acquire Warner Bros., including its film and television studios, HBO, and HBO Max. The cash-and-stock deal values WBD at $27.75 per share, representing a total equity value of $72 billion and an enterprise value of $82.7 billion.
The transaction, one of the largest in media history – is expected to close following the previously announced separation of WBD’s Global Networks division into a new public company, Discovery Global, now planned for Q3 2026.
A Combined Powerhouse of Storytelling
The acquisition unites Netflix’s global streaming leadership with Warner Bros.’ century-long legacy of iconic franchises. Beloved titles such as Game of Thrones, Harry Potter, The Wizard of Oz, Friends, Batman, and The Big Bang Theory will join Netflix’s existing hit lineup including Stranger Things, Money Heist, and Wednesday.
Netflix will maintain Warner Bros.’ current operations, including theatrical film releases, while integrating HBO and HBO Max’s premium programming into its service.
Benefits for Consumers, Creators, and Shareholders
Netflix outlined several advantages of the merger:
- More choice for consumers: Netflix members will gain access to Warner Bros.’ extensive film and TV catalog, HBO originals, and HBO Max programming.
- Stronger creative opportunities: Talent will have more avenues to work with top-tier intellectual property and reach wider global audiences.
- Industry expansion: Netflix plans to scale U.S. production capacity and increase long-term investment in original content.
- Cost savings and higher profitability: Netflix expects $2–3 billion in annual cost synergies by year three and anticipates the deal will be accretive to GAAP EPS by year two.
Transaction Structure
Under the terms of the deal:
- Each WBD shareholder will receive
- $23.25 in cash, plus
- $4.501 in Netflix stock per WBD share.
- The stock portion includes a collar mechanism:
- If Netflix’s VWAP is between $97.91 and $119.67, shareholders will receive stock valued at $4.50.
- Below $97.91, shareholders receive 0.0460 NFLX shares.
- Above $119.67, they receive 0.0376 NFLX shares.
Completion requires regulatory approvals, WBD shareholder approval, and the finalization of Discovery Global’s spin-off.
