Netflix has struck a transformative deal to acquire Warner Bros. studios, HBO, and HBO Max from Warner Bros. Discovery (WBD) in a cash-and-stock transaction valued at $82.7 billion.
The move catapults Netflix into a content powerhouse, blending its streaming dominance with Warner’s storied Hollywood legacy.
Announced Friday, the agreement values WBD shares at $27.75 each, with an equity value of $72 billion. It hinges on WBD first spinning off its Global Networks division, including CNN, TNT Sports, and Discovery+, into a separate public company by Q3 2026.
Netflix plans to preserve Warner Bros.’ operations, including theatrical releases, while integrating its vast libraries.
Ted Sarandos, co-CEO of Netflix, hailed the union as a storytelling revolution. “By combining Warner Bros.’ incredible library from timeless classics like Casablanca and Citizen Kane to modern favorites like Harry Potter and Friends with our culture-defining titles like Stranger Things and Squid Game, we’ll give audiences more of what they love,” he said.
Co-CEO Greg Peters emphasized growth. “Warner Bros. has defined entertainment for a century. With our global reach, we’ll introduce broader audiences to their worlds, attracting more fans and strengthening the industry.”
David Zaslav, WBD’s president and CEO, celebrated the synergy. “This combines two of the greatest storytelling companies to bring resonant stories to generations.”
The merger unites icons like Game of Thrones, The Sopranos, and the DC Universe with Netflix hits such as Wednesday and Bridgerton. Consumers gain deeper libraries and optimized plans, while creators access global audiences and IP.
Netflix forecasts $2-3 billion in annual cost savings by year three, accretive earnings by year two, and boosted U.S. production jobs.
Follow us on Google News, LinkedIn, and X for daily cybersecurity updates. Contact us to feature your stories.
