Netflix has agreed to acquire the studios and streaming businesses of Warner Bros Discovery (WBD) in a deal valued at $83 billion, marking one of the most consequential consolidation moves in Hollywood’s modern era.
The massive takeover will position the streaming giant as the industry’s most powerful entertainment company.
A deal that reshapes Hollywood
The agreement will significantly expand Netflix’s content footprint by bringing the full Warner Bros library—including franchises such as Harry Potter and Batman, along with HBO’s catalogue of premium series—under its umbrella.
Netflix’s existing slate, already among the strongest in the streaming sector, will be bolstered by decades of film, television, and cultural IP from one of Hollywood’s most storied studios.
Netflix prevailed in an auction process that included interest from Paramount and Comcast.
The process was overseen by WBD chief executive David Zaslav.
The cash-and-stock transaction values WBD’s studios and streaming assets at $27.75 per share.
The acquisition is expected to close following the previously announced separation of WBD’s networks division, Discovery Global, which will become a standalone public company.
Netflix positions for global scale
“Our mission has always been to entertain the world,” Netflix co-CEO Ted Sarandos said.
“By combining Warner Bros.’ incredible library of shows and movies—from timeless classics like Casablanca and Citizen Kane to modern favourites like Harry Potter and Friends—with our culture-defining titles like Stranger Things, KPop Demon Hunters and Squid Game, we’ll be able to do that even better. Together, we can give audiences more of what they love and help define the next century of storytelling.”
Under the terms outlined, each WBD shareholder will receive $23.25 in cash and $4.501 in Netflix common stock for every WBD share at closing.
The companies said the deal values Warner Bros Discovery at $27.75 per share, translating into an equity valuation of roughly $72 billion and an enterprise value of about $82.7 billion.
The timeline and other details of the deal
WBD announced in June 2025 that it would divide its operations into two separately listed companies: Streaming & Studios, and Global Networks.
That separation is now expected to be completed in the third quarter of 2026, ahead of the Netflix transaction closing.
The new Global Networks entity, Discovery Global, will include entertainment, sports, and news channels such as CNN, TNT Sports in the US, the Discovery brand across Europe, and digital platforms including Discovery+ and Bleacher Report.
Both companies’ boards approved the agreement unanimously.
The deal remains subject to several conditions, including completion of WBD’s separation of Discovery Global, regulatory approvals, a vote of WBD shareholders, and customary closing requirements.
The companies expect the transaction to conclude within 12 to 18 months.
Netflix said it will host a conference call at 5:00 a.m. PT / 8:00 a.m. ET to discuss the announcement.
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