Netflix has officially announced its acquisition of Warner Bros. in a monumental deal valued at $82.7 billion. The agreement, confirmed on Friday, encompasses Warner Bros.’ film and television studios, including its renowned platforms, HBO and HBO Max. Both Netflix and Warner Bros. Discovery (WBD) boards unanimously approved the sale, as detailed in a filing with the United States Securities and Exchange Commission (SEC).
The total equity value of the sale stands at $72 billion, with an enterprise value, which includes debt, reaching $82.7 billion. Netflix’s valuation of WBD amounts to $27.75 per share. This acquisition follows WBD’s rejection of previous bids from Paramount Skydance and a merger proposal from Comcast involving NBC Universal.
Implications of the Acquisition
The landmark agreement is set to close after WBD’s Global Networks division, Discovery Global, transitions into a publicly traded entity in the third quarter of 2026. Before the deal can be finalized, Netflix and WBD must secure approval from the SEC for their filed agreement.
In a statement, Netflix co-CEO Ted Sarandos emphasized the company’s mission to entertain a global audience. He stated, “Together, we can give audiences more of what they love and help define the next century of storytelling.” His co-CEO counterpart, Greg Peters, remarked that the acquisition will enhance Netflix’s offerings and accelerate its business for years to come.
WBD’s CEO, David Zaslav, described the merger as a combination of two premier storytelling entities, aiming to provide audiences with an enriched entertainment experience.
Changes for Streaming Services
The Netflix-WBD deal signifies that the streaming giant, known for hits like Stranger Things and K-Pop Demon Hunters, will now incorporate HBO’s extensive catalog. This includes iconic franchises such as Game of Thrones and the Harry Potter series, alongside properties from DC Comics and Warner Bros. Games.
This acquisition marks the most significant move for Warner Bros. Discovery since the merger of HBO Max with Discovery+ in 2023. According to Netflix’s announcement, the company plans to uphold Warner Bros.’ current operations and enhance its strengths, particularly in theatrical film releases.
For Netflix subscribers, the integration of HBO and HBO Max content is expected to result in a “compelling, complementary offering.” The company hinted at potential bundles or merged content libraries in the future, enhancing the viewing options available to consumers.
Netflix has stated that by incorporating HBO’s extensive film and television libraries, members will gain access to an even broader array of high-quality titles. This acquisition also positions Netflix to expand its studio production capabilities and increase investment in original content.
As the deal awaits SEC approval, Netflix has assured customers that there will be no immediate changes to streaming services. For now, subscribers can continue to enjoy their current offerings while anticipating the potential expansion of content in the future.
