In a move that will reshape the entertainment landscape, Netflix has reached a definitive agreement to acquire Warner Bros., including its renowned film and TV studios, HBO, and the HBO Max streaming service. The cash-and-stock transaction values the business at approximately $82.7 billion (€71.0 billion) in enterprise value.
The deal's completion hinges on Warner Bros. Discovery (WBD) finalizing the previously announced separation of its Global Networks division into a newly formed, publicly traded entity, Discovery Global, which is now anticipated to occur in Q3 2026.
According to the transaction's terms, Warner Bros. Discovery (WBD) shareholders are slated to receive $23.25 in cash and $4.50 (€3.9) in Netflix stock for each WBD share held, valuing the company at $27.75 (€23.8) per share and implying a total equity value of roughly $72.0 billion (€61.8 billion). Netflix and WBD project the acquisition to conclude within 12–18 months following the spin-off, pending regulatory and shareholder approvals.
This acquisition will grant Netflix control over one of Hollywood's most distinguished studios, along with its impressive portfolio of premium brands and franchises. Warner Bros properties like *The Big Bang Theory*, *Game of Thrones*, *The Sopranos*, the *DC Universe*, *Harry Potter*, and *Friends* will eventually find themselves alongside Netflix originals such as *Stranger Things*, *Squid Game*, *Money Heist*, and *Bridgerton* under a unified corporate structure.
Netflix has stated its intention to maintain Warner Bros.’ current operations, including theatrical releases, and leverage its expansive global streaming presence to broaden the studio’s IP reach. HBO and HBO Max are envisioned as a "complementary" premium offering within Netflix’s future portfolio, rather than functioning as a separate rival service.
While the specifics of branding and packaging are yet to be finalized, Netflix is suggesting a tiered approach that integrates HBO’s series into broader streaming packages, allowing for more comprehensive bundling of libraries and windowing across its worldwide service. The company aims to achieve $2–3 billion (€2.1–2.6 billion) in annual cost savings within three years and anticipates the transaction to be accretive to earnings per share by the second year following its completion.
Discovery Global, the networks spin-off that remains separate from the Netflix deal, will retain WBD’s linear and sports businesses, encompassing CNN, TNT Sports in the United States, Discovery-branded entertainment channels, European free-to-air outlets, and streaming products like Discovery+ and Bleacher Report. This arrangement effectively isolates legacy cable and global channels from the studio and streaming assets being acquired by Netflix, preserving an independent pay-TV and news portfolio for potential future consolidation efforts.
The agreement culminates a bidding war that lasted for months, with Paramount Skydance and Comcast also submitting offers. Paramount had sought a complete takeover of WBD, including CNN and the cable networks, whereas Netflix and Comcast focused primarily on the studio and streaming divisions. Recent reports indicated that Netflix’s predominantly cash proposal had gained prominence, with WBD’s board ultimately favoring the Netflix structure over competing bids.
Paramount has already voiced concerns regarding a "tilted" auction process and may still explore hostile alternatives, although control of Warner Bros is now contractually committed to Netflix, barring regulatory intervention. The deal will now undergo thorough examination by competition authorities in the United States, Europe, and other key markets, considering the combination of Netflix’s global streaming dominance with HBO’s premium subscription base and the Warner Bros studio. Lawmakers and industry groups have already expressed concerns about market concentration during the earlier stages of bidding, and Netflix is preparing for an extensive review process.