Netflix Reaches Agreement To Acquire Warner Bros. Following Planned WBD Split
The deal does not include WBD's sports assets like TNT Sports (US, UK, LatAm), Eurosport, and Bleacher Report
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Netflix and Warner Bros. Discovery (WBD) announced on Friday that they have entered into a definitive agreement under which Netflix will acquire Warner Bros., including its film and television studios, HBO, and HBO Max.
The deal assigns an enterprise value of approximately $82.7 billion (equity value of $72.0 billion) to Warner Bros.. It is structured as a cash-and-stock transaction valued at $27.75 per WBD share, subject to a collar mechanism.
The acquisition is expected to close after WBD completes the previously announced separation of its Global Networks division—Discovery Global—into a standalone publicly traded company, a process now targeted for Q3 2026. Discovery Global will serve as the networks entity, housing CNN, TNT Sports in the U.S., Discovery’s international channels, and digital properties including Discovery+ and Bleacher Report. The transaction remains subject to regulatory review, shareholder approval, and other customary conditions, with an anticipated closing window of 12–18 months.
If approved, the deal would bring Warner Bros.’ film and television assets, along with the HBO and HBO Max brands, under Netflix ownership. Netflix said it intends to maintain Warner Bros.’ existing operations, including theatrical distribution. Executives from both companies described the proposed combination as an effort to extend the reach of their respective content libraries and production capabilities.
Financial terms include $23.25 in cash and $4.50 in Netflix stock for each WBD share at closing. The stock component is subject to a collar based on Netflix’s 15-day volume-weighted average price immediately preceding the transaction’s close. Depending on the stock price at that time, WBD shareholders would receive between 0.0376 and 0.0460 Netflix shares per WBD share.
Boards of directors for both companies have unanimously approved the agreement. Regulatory scrutiny is expected given the scale of the transaction and its potential impact on the entertainment and streaming landscape.
Moelis & Company is serving as financial advisor to Netflix, with legal counsel from Skadden, Arps, Slate, Meagher & Flom LLP. Wells Fargo, BNP, and HSBC are providing committed debt financing. Allen & Company, J.P. Morgan, and Evercore are advising WBD, with counsel from Wachtell Lipton Rosen & Katz and Debevoise & Plimpton LLP.
