In a major streaming acquisition, Netflix has announced a definitive agreement to buy Warner Bros. Discovery for $82.7 billion. This transaction unites the world’s leading subscription streaming service with one of Hollywood’s founding studios, creating an entertainment powerhouse with the content, technology, and global reach to dominate the industry for years to come.
Warner Bros. Discovery shareholders stand to receive $27.75 per share under the terms of the agreement, which establishes total equity value at approximately $72.0 billion. The comprehensive enterprise value of $82.7 billion encompasses Warner Bros. Discovery’s entire portfolio, including its production facilities, content libraries, HBO brand, and cable networks. Both companies’ leadership teams have unanimously approved the transaction, setting the stage for regulatory review.
Ted Sarandos, co-CEO of Netflix, articulated the strategic vision behind the acquisition. He described how combining Warner Bros.’ century of storytelling excellence with Netflix’s modern content delivery platform will create unprecedented opportunities to entertain audiences worldwide. The merger provides Netflix with instant access to beloved franchises and classic films while offering Warner Bros. content a streaming platform with hundreds of millions of subscribers.
David Zaslav of Warner Bros. Discovery praised the merger as bringing together complementary strengths and shared values. He noted that while Warner Bros. excels at content creation, Netflix has mastered the technology and data science of content recommendation and delivery. The partnership leverages these capabilities to create an integrated entertainment company positioned to lead the industry through the next phase of its evolution.