Netflix and Warner Bros. Discovery entered a definitive agreement for Netflix to acquire Warner Bros., including its film and television studios, HBO and HBO Max. The proposed cash-and-stock transaction carries an enterprise value of about $82.7 billion and an equity value of approximately $72 billion.
The agreement values Warner Bros. Discovery shares at $27.75 each. At closing, shareholders would receive $23.25 in cash and about $4.50 in Netflix stock for every WBD share, with the stock portion governed by a price collar. The collar's stated share-price range ran from $97.91 to $119.67. The boards of both companies unanimously approved the transaction. It remained a proposed acquisition rather than a completed transfer.
A planned restructuring must occur first. Warner Bros. Discovery had announced that it would divide its Streaming & Studios and Global Networks operations into separately traded companies. The Global Networks business, named Discovery Global, was expected to separate in the third quarter of 2026 and retain assets including CNN, TNT Sports in the United States, Discovery, European free-to-air channels, Discovery+ and Bleacher Report. Netflix's purchase would follow that separation.
The parties expected the acquisition to close within 12 to 18 months, subject to required regulatory clearances, approval by Warner Bros. Discovery shareholders and customary conditions. Those dependencies mean the announced price and timetable did not guarantee completion.
If completed, Netflix would add Warner Bros.' production operations and extensive catalog to its streaming business. The companies highlighted HBO programming and franchises including DC, Game of Thrones and Harry Potter alongside older films and television series. Netflix said it intended to maintain Warner Bros.' current operations and continue theatrical film releases rather than moving all output directly to streaming.
Netflix framed the combination as a way to increase selection for subscribers, extend Warner Bros. productions to its global audience and expand US production capacity. Those benefits are the companies' projections. Netflix also forecast at least $2 billion to $3 billion in annual cost savings by the third year and said it expected the transaction to add to earnings per share by the second year.
The scale of those claims matches the scale of the integration challenge. The agreement would combine a global subscription platform with a century-old studio, premium cable and streaming brands, and major intellectual property. It would also separate those assets from a networks company containing news, sports and traditional television businesses. Until the corporate split and approvals are complete, the organizations remain distinct and the libraries, operations and subscriber products do not automatically merge.
