Netflix and Warner Bros. Discovery enter a definitive agreement that puts Warner Bros., HBO, and HBO Max under the Netflix banner. The cash and stock deal values the transaction at $27.75 per WBD share, for a total enterprise value of about $82.7 billion. The acquisition is expected to close after WBD completes the previously announced separation of Discovery Global into a new public company in Q3 2026.
A New Entertainment Giant
The deal brings together Netflix’s global streaming reach with Warner Bros.’ century of filmmaking and premium television. Iconic titles such as The Big Bang Theory, The Sopranos, Game of Thrones, The Wizard of Oz, and the DC Universe will join Netflix hits like Wednesday, Money Heist, Bridgerton, Adolescence, and Extraction.
“Our mission has always been to entertain the world,” says Netflix co-CEO Ted Sarandos. He highlights the power of combining Warner Bros.’ classics, from Casablanca to Friends, with Netflix originals like Stranger Things and Squid Game. “Together, we can give audiences more of what they love.”
Co-CEO Greg Peters adds that the acquisition positions Netflix for decades of growth. “Warner Bros. has helped define entertainment for more than a century. With our global reach, we can introduce their worlds to an even broader audience.”
WBD CEO David Zaslav calls the merger a major moment in storytelling. “By coming together with Netflix, we will ensure people everywhere continue to enjoy the world’s most resonant stories for generations.”
What Are The Benefits To Netflix
Complementary strengths. Netflix plans to maintain Warner Bros.’ current operations, including theatrical releases. HBO and HBO Max expand Netflix’s premium portfolio.
More choice for viewers. Subscribers gain access to deeper film and TV libraries and premium HBO programming, increasing content variety and viewing flexibility.
Stronger industry impact. Netflix expects to expand U.S. production capacity, increase long-term investment in original content, and generate new jobs.
More opportunities for creators. Talent will have broader access to major franchises, beloved IP, and global audiences.
Shareholder value. Netflix projects higher engagement, incremental revenue, and $2-3 billion in annual cost savings by year three. The company expects the deal to be accretive to GAAP earnings per share by year two.
Industry Pushback Builds
Not everyone welcomes the merger. A group of leading producers sent an anonymous open letter to Congress warning of potential economic and institutional upheaval. They say anonymity protects them from retaliation, given Netflix’s dominant market position.
The group claims the acquisition could “destroy” the theatrical marketplace. Their primary concern is the theatrical window for Warner Bros. films. Sources previously told Variety that Netflix proposed theatrical exclusivity as short as two weeks before films shift to the combined streaming platform. Another insider denies this, stating the windows would be longer.
The producers warn that Netflix could “hold a noose around the theatrical marketplace,” reducing theatrical footprints and driving down licensing fees across post-theatrical windows.
