Netflix Moves to Acquire Warner Bros. in $82.7 Billion Deal, Reshaping Global Entertainment Landscape

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Netflix Inc. agreed to acquire Warner Bros. from Warner Bros. Discovery Inc. in a cash-and-stock deal valuing the storied studio at an enterprise value of approximately $82.7 billion, according to a Dec. 5, 2025 press release issued by Netflix and WBD. The transaction—one of the largest entertainment mergers on record—would unite Netflix’s dominant global streaming platform with Warner Bros.’ century-old film and television library, including franchises such as Harry Potter, Game of Thrones, and the DC Universe.

Under the terms disclosed, WBD shareholders will receive $23.25 in cash and $4.50 in Netflix stock per share, subject to a collar tied to Netflix’s 15-day volume-weighted average price before closing. The transaction implies an equity value of about $72 billion for WBD. Completion is expected 12 to 18 months after regulatory reviews and shareholder approval, and following WBD’s planned separation of its Global Networks division into a new company, Discovery Global, anticipated in the third quarter of 2026.

If consummated, the merger would mark a dramatic consolidation in the media landscape. The companies said the move would blend Netflix’s global distribution scale and “best-in-class streaming service” with Warner Bros.’ deep catalog and production infrastructure.

“Our mission has always been to entertain the world,” Netflix co-CEO Ted Sarandos said in the release. “By combining Warner Bros.’ incredible library of shows and movies—from timeless classics like Casablanca and Citizen Kane to modern favorites like Harry Potter and Friends—with our culture-defining titles like Stranger Things, KPop Demon Hunters and Squid Game, we'll be able to do that even better.”

Netflix co-CEO Greg Peters said the acquisition “will improve our offering and accelerate our business for decades to come,” adding that Warner Bros. “continues to do so with phenomenal creative executives and production capabilities.” Peters also highlighted the deal’s financial rationale, stating that Netflix expects to “realize at least $2–3 billion of cost savings per year by the third year and expects the transaction to be accretive to GAAP earnings per share by year two.”

Warner Bros. Discovery CEO David Zaslav framed the merger as an extension of the studio’s legacy. “For more than a century, Warner Bros. has thrilled audiences, captured the world’s attention, and shaped our culture,” he said. “By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come.”

The companies emphasized the merger’s benefits for consumers, creatives, and shareholders. Netflix said maintaining Warner Bros.’ current operations—including theatrical releases—would expand content choices for subscribers and drive engagement. The combined entity expects increased production capacity in the U.S. and broader opportunities for talent to work with “beloved intellectual property.”

The deal introduces a significant structural shift for WBD. Its Global Networks unit—which includes CNN, TNT Sports, Discovery’s European free-to-air channels, and digital platforms like Discovery+ and Bleacher Report—will be spun out as Discovery Global, a separate publicly traded firm not included in the Netflix transaction.

Advisers on the deal include Moelis & Company for Netflix and Allen & Company, J.P. Morgan, and Evercore for WBD. Netflix’s legal counsel is Skadden, Arps, Slate, Meagher & Flom LLP, while WBD is represented by Wachtell, Lipton, Rosen & Katz and Debevoise & Plimpton LLP.