Netflix has reached an agreement to acquire Warner Bros. from Warner Bros. Discovery in a transformative $82.7 billion cash-and-stock deal, marking one of the biggest mergers in entertainment history and signaling a dramatic power shift in Hollywood.
Both companies confirmed the agreement on Friday, ending months of speculation about a potential acquisition that would place one of Hollywood’s oldest studios under the control of the world’s largest streaming platform.
Deal Structure
Under the terms of the arrangement, Warner Bros. Discovery shareholders will receive $23.25 in cash and $4.50 in Netflix stock per share, valuing Warner Bros. at about $72 billion in equity.
The transaction is subject to the previously announced spinoff of Warner Bros. Discovery’s Global Networks division into a separate publicly listed company, Discovery Global, expected to be completed in Q3 2026.
If fully approved, the deal will make Netflix the owner of a major Hollywood studio for the first time—an extraordinary evolution for a company that began as a DVD-by-mail service.
Legacy Studio Meets Streaming Giant
Warner Bros., established in the 1920s, brings with it some of the most iconic film and TV properties ever created, including Casablanca, The Wizard of Oz, Harry Potter, Friends, The Sopranos, and the entire DC Universe. HBO and HBO Max will also fall under Netflix’s control after the deal closes.
Netflix says it plans to grow its U.S. production footprint and leverage Warner Bros.’ century-old studio infrastructure to strengthen and scale its global original content offerings.
Executives from both companies called the deal a pivotal moment for the industry.
What They Said
Netflix co-CEO Ted Sarandos stated:
“Our mission has always been to entertain the world. By combining Warner Bros.’ incredible library—from timeless classics like Casablanca and Citizen Kane to modern favorites like Harry Potter and Friends—with Netflix hits like Stranger Things, Squid Game, and KPop Demon Hunters, we can deliver even more of what audiences love and help define the next century of storytelling.”
Netflix co-CEO Greg Peters added:
“This acquisition strengthens our offering and accelerates our business for decades. With Warner Bros.’ creative excellence and our global reach, we can introduce these worlds to an even broader audience, bring more fans to our platform, and create lasting value for shareholders.”
Why It Matters
The acquisition comes at a turbulent time for the entertainment industry:
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Traditional TV networks are losing subscribers at record rates.
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Streaming services continue to face increased competition and rising production costs.
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Warner Bros. Discovery is restructuring its business after steep declines in cable revenue.
The merger will undergo intense regulatory examination in the U.S. and internationally, given that a combined Netflix–Warner Bros. entity would hold enormous influence over both streaming and premium scripted entertainment. Antitrust concerns are expected to be a major focus.
The approval process—along with shareholder voting and the Discovery Global spinoff—is expected to take 12 to 18 months.
Advisors and Next Steps
Netflix is being advised by Moelis & Company, while Warner Bros. Discovery is working with Allen & Company, J.P. Morgan, and Evercore.
Although both companies say cost efficiencies will emerge over time, specific details on restructuring or changes within Warner Bros. have not yet been disclosed.
If the deal closes, it will mark one of the biggest entertainment mergers ever and cement Netflix’s position at the center of global media power.
