Netflix to Buy Warner Bros. in $82.7 Billion Deal

Netflix is set to acquire Warner Bros. in a cash-and-stock transaction valued at $82.7 billion in enterprise terms, the companies announced on December 5, 2025. The deal, which gives Warner Bros. Discovery shareholders $27.75 per share, will bring iconic franchises such as Harry Potter, the DC Universe, and HBO originals under Netflix’s roof.

The acquisition follows Warner Bros. Discovery’s planned separation of its Global Networks business — including CNN, TNT Sports, Discovery Channel — into a new public company called Discovery Global. That spin-off, originally slated for earlier, is now expected in the third quarter of 2026. The Netflix Warner Bros acquisition will close 12 to 18 months from now, pending regulatory and shareholder approvals.

Under the terms, WBD shareholders will receive $23.25 in cash plus Netflix stock worth $4.50 per share. A collar mechanism protects the stock portion: if Netflix’s 15-day average price falls below $97.91, shareholders get more Netflix shares; if it rises above $119.67, they receive fewer.

Netflix co-CEO Ted Sarandos called the combination a chance to “define the next century of storytelling.” His counterpart Greg Peters said the deal would expand production capacity and deliver at least $2–3 billion in annual cost savings by the third year.

Warner Bros. Discovery CEO David Zaslav described the move as the best way to ensure Warner Bros.’ stories “continue to thrill audiences for generations.”

Netflix plans to keep Warner Bros.’ film and television studios intact, including theatrical releases. HBO and HBO Max programming will join Netflix’s lineup alongside originals such as Stranger Things and Squid Game.

Advisers on the Netflix side include Moelis & Company and debt financing from Wells Fargo, BNP Paribas, and HSBC. Warner Bros. Discovery is working with Allen & Company, J.P. Morgan, Evercore, and law firms Wachtell Lipton and Debevoise & Plimpton.

The companies cautioned that the deal carries the usual risks, including regulatory hurdles and integration challenges. Full details will appear in forthcoming SEC filings.