Netflix has officially announced its intention to acquire Warner Bros. Discovery (WBD) in a monumental deal valued at $82.7 billion. The agreement, confirmed on Friday, includes the acquisition of WBD’s extensive film and television assets, notably HBO and its streaming platform, HBO Max. The transaction has received unanimous approval from both companies’ boards, according to a filing with the United States Securities and Exchange Commission (SEC).
The sale’s equity value is set at $72 billion, with Netflix valuing WBD at $27.75 per share. Netflix emerged victorious in a competitive bidding process, surpassing offers from Paramount Skydance and a proposed merger with Comcast’s NBC Universal. The completion of this landmark acquisition is anticipated following the establishment of WBD’s Global Networks division, Discovery Global, as a publicly traded company in Q3 2026.
Strategic Vision and Future Prospects
“This partnership aligns with our mission to entertain the world,” stated Netflix co-CEO Ted Sarandos in a press release. He emphasized that the collaboration will enhance audience engagement and shape the future of storytelling. Co-CEO Greg Peters echoed this sentiment, asserting that the acquisition will “improve our offering and accelerate our business for decades to come.”
WBD CEO David Zaslav described the merger as a union of two leading storytelling companies, poised to deliver more of the entertainment audiences cherish. The deal indicates a significant shift in the streaming landscape, as Netflix will soon possess not only its own successful franchises such as Stranger Things but also the rich libraries of HBO, including the acclaimed Game of Thrones series and the beloved Harry Potter franchise, along with DC Comics and Warner Bros. Games.
The merger represents the largest strategic move for Warner Bros. Discovery since the integration of HBO Max and Discovery+ in 2023. Netflix has indicated its intent to maintain WBD’s current operations while building on its strengths, particularly in theatrical film releases.
Implications for Streaming Services
For subscribers, this acquisition signifies an expansion of content offerings. Netflix characterized HBO and HBO Max’s titles as a “compelling, complementary offering” which could lead to bundled services or unified content libraries. “By integrating the extensive film and TV libraries and programming from HBO and HBO Max, Netflix members will enjoy an even broader selection of high-quality titles,” the company stated.
The acquisition also positions Netflix to enhance its studio production capabilities and increase investments in original content. Until the SEC provides its approval for the deal, users of both streaming services should see no immediate changes to their viewing experience.
As the entertainment industry continues to evolve, this acquisition marks a pivotal moment for Netflix and Warner Bros. Discovery, with the potential to reshape the landscape of digital streaming and content consumption.
