Netflix agrees to acquire Warner Bros. Discovery

Netflix is acquiring Warner Bros. for $82.7 billion

Netflix has today announced that it plans to acquire Warner Bros. Discovery fr $82. billion. This deal will see Netflix gain the company’s film and television studios alongside HBO Max and HBO.

This deal is expected to close in Q3 2026 and is subject to regulatory approval. The deal will significantly increase Netflix’s TV and Film libraries. However, it is worth noting that Netflix claims that it will “maintain Warner Bros.’ current operations”.

When this acquisition closed, Netflix stated that it expects to realise “$2-3 billion” in cost savings per year. It is unknown how Netflix plans to achieve this, though job losses seem likely in this scenario.

Today, Netflix, Inc. (the Company) and Warner Bros. Discovery, Inc. (WBD) announced they have entered into a definitive 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 (subject to a collar as detailed below), with a total enterprise value of approximately $82.7 billion (equity value of $72.0 billion). The transaction is expected to close after the previously announced separation of WBD’s Global Networks division, Discovery Global, into a new publicly-traded company, which is now expected to be completed in Q3 2026.

This acquisition brings together two pioneering entertainment businesses, combining Netflix’s innovation, global reach and best-in-class streaming service with Warner Bros.’ century-long legacy of world-class storytelling. Beloved franchises, shows and movies such as The Big Bang Theory, The Sopranos, Game of Thrones, The Wizard of Oz and the DC Universe will join Netflix’s extensive portfolio including Wednesday, Money Heist, Bridgerton, Adolescence and Extraction, creating an extraordinary entertainment offering for audiences worldwide.

– Netflix

This deal will also see Netflix gain Warner Bros. Games. This gives Netflix access to the studios behind Mortal Kombat, Hogwarts Legacy, the Batman Arkham series, and more. It is currently unknown how Netflix plans to use these newly acquired gaming assets.

As mentioned before, this deal is expected to close in Q3 2026. This means that Warner Bros. Discovery will continue to operate as normal until then.

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