Streaming giant Netflix seals historic Warner Bros. takeover

Netflix and Warner Bros. Discovery (WBD) have confirmed that they have reached a final agreement under which Netflix will acquire Warner Bros. in a cash-and-stock transaction valued at USD 27.75 per WBD share.

The deal covers WBD’s film and television studios, HBO, and the HBO Max streaming service. It assigns the company an enterprise value of approximately USD 82.7 billion and an equity value of around USD 72 billion.

The parties expect the transaction to close in the third quarter of 2026, following the previously announced separation of WBD’s Global Networks division, Discovery Global, into an independent, publicly traded company.

Content Expansion and Strategic Fit

The combination brings together Warner Bros.’ century-long heritage in film and television with Netflix’s global streaming footprint and technology infrastructure. Netflix’s existing slate, which includes major original hits such as Wednesday, Money Heist, and Bridgerton, will be significantly expanded by the addition of Warner Bros.’ extensive catalogue.

This includes some of the most recognisable properties in modern entertainment, from The Big Bang Theory, The Sopranos and Game of Thrones to The Wizard of Oz and the entire DC Universe. Under the terms of the agreement, WBD shareholders will receive USD 23.25 in cash and USD 4.50 in Netflix stock for each share they hold.

Discovery global spin-off 

Before the deal is completed, WBD’s Global Networks division, comprising CNN, TNT Sports in the United States, Discovery-branded channels, free-to-air networks across Europe and digital platforms such as Discovery+ and Bleacher Report, will be spun off into a new entity, Discovery Global. The restructuring forms part of WBD’s wider plan, announced in June 2025, to separate its Global Networks business from its Streaming and Studios divisions, each becoming its own publicly listed company.

Netflix has stated that it expects the merger to deliver cost reductions of between USD 2 billion and USD 3 billion by the third year and to become accretive to GAAP earnings per share by the second year. The official line from both companies is that the acquisition will strengthen the entertainment sector, generate more opportunities for creators and deliver greater value to shareholders and customers.

Underlying strategic intent 

Behind these public assertions lies a broader strategic intent. The acquisition positions Netflix to accelerate its transformation from a purely digital platform into a full-scale entertainment conglomerate with control over both production and distribution.

By absorbing one of Hollywood’s most storied studios and its vast intellectual property portfolio, Netflix is seeking to fortify its competitive position against rivals in an increasingly consolidated global market. The move appears aimed not only at expanding content breadth but also at securing long-term leverage in licensing, global streaming rights and cross-platform storytelling, areas that will define the next phase of the entertainment industry.

Who Stands to maximum benefit 

At the same time, WBD stands to benefit from unlocking significant shareholder value after years of financial pressure and strategic uncertainty. For creators, the merger could open the door to bigger budgets, wider dissemination and a more integrated development pipeline, although some may fear reduced independence as consolidation continues. Audiences may ultimately gain from a richer range of titles and more consistent access to premium content, provided that the transition between platforms is handled smoothly.

The boards of both companies have unanimously approved the agreement. However, completion remains subject to WBD shareholder approval, regulatory clearance in multiple jurisdictions, the formal completion of the Discovery Global spin-off, and other customary conditions. If all permissions are secured, the deal is expected to close within 12 to 18 months of Discovery Global’s separation.

“Our mission has always been to entertain the world,” said Ted Sarandos, co-CEO of Netflix. “By bringing together Warner Bros’ remarkable library, from classics such as Casablanca and Citizen Kane to modern favourites like Harry Potter and Friends, with our own culture-defining titles including Stranger Things, KPop Demon Hunters and Squid Game, we can do that even better. Together, we can offer audiences more of what they love and help shape the next century of storytelling.”

“This acquisition will strengthen our offering and accelerate our business for decades,” added Greg Peters, co-CEO of Netflix. “Warner Bros. has shaped entertainment for more than a hundred years. With our global reach and proven model, we can bring their worlds to an even wider audience, giving members more choice, attracting new fans, supporting the industry and creating greater value for shareholders.”