Netflix has announced its agreement to acquire Warner Bros. Discovery’s film and television studios, along with the streaming service HBO Max, in a cash-and-stock transaction valued at approximately $82.7 billion. This deal, expected to close following the planned separation of Warner Bros. Discovery’s Global Networks division into a new publicly traded entity named Discovery Global, marks a significant consolidation in the entertainment industry.
Under the terms of the agreement, Warner Bros. Discovery shareholders will receive $23.25 in cash and $4.50 in Netflix stock for each share, valuing the company at $27.75 per share. This valuation implies a total equity value of about $72.0 billion and an enterprise value—including debt—of approximately $82.7 billion. The transaction is anticipated to conclude within 12 to 18 months, following the completion of Warner Bros. Discovery’s corporate restructuring, expected in the third quarter of 2026.
Netflix’s acquisition encompasses Warner Bros.’ extensive content library, including iconic franchises such as “Harry Potter,” “Game of Thrones,” and the DC Universe. This strategic move is poised to enhance Netflix’s content offerings and strengthen its position in the competitive streaming landscape.
The deal follows a competitive bidding process, with Netflix’s offer surpassing those from Paramount Skydance and Comcast. Paramount Skydance had proposed acquiring the entire Warner Bros. Discovery business, including its cable networks, but Netflix’s bid for the studio and streaming assets proved more compelling.
Legal representation for the transaction includes Skadden, Arps, Slate, Meagher & Flom advising Netflix, while Wachtell, Lipton, Rosen & Katz, and Debevoise & Plimpton are representing Warner Bros. Discovery. The Skadden team is led by M&A partners Kenton King and Sonia Nijjar in Palo Alto, and Lauren Kramer in New York, all of whom have extensive experience in major Silicon Valley deals.
Regulatory scrutiny is anticipated, given the consolidation of two major streaming platforms—Netflix and HBO Max. Critics, including former WarnerMedia CEO Jason Kilar and industry groups like Cinema United, have expressed concerns that the merger could reduce competition and negatively impact consumers. Bipartisan opposition has also emerged, with lawmakers such as Senator Elizabeth Warren and Representative Pramila Jayapal describing the merger as an antitrust “nightmare,” warning of potential higher subscription prices and reduced consumer choice.
Netflix CEO Ted Sarandos has defended the acquisition, stating that it will “improve our offering and accelerate our business for decades to come.” He emphasized that combining Warner Bros.’ creative capabilities with Netflix’s global reach will provide audiences with more diverse content and strengthen the entertainment industry.
As the deal progresses, it will undergo scrutiny from U.S. and European antitrust regulators to assess its impact on market competition and consumer choice. The outcome of these reviews will determine the future landscape of the streaming industry and the broader media sector.