Today, Netflix, Inc. and Warner Bros. Discovery, Inc. announced they have signed a definitive agreement for Netflix to acquire Warner Bros., including its film and television studios, HBO Max, and HBO.
The cash-and-stock deal is valued at $27.75 per WBD share, with an overall enterprise value of around $82.7 billion (equity value of $72.0 billion).
The agreement, announced today, concludes a weeks-long bidding war. Netflix took the lead with a nearly $28-per-share offer, surpassing Paramount Skydance’s nearly $24 bid for Warner Bros Discovery as a whole, including the cable TV assets planned for spinoff.
Ted Sarandos, co-CEO of Netflix, told investors, “Our mission has always been to entertain the world. 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. Together, we can give audiences more of what they love and help define the next century of storytelling.”
Greg Peters, co-CEO of Netflix, stated, “This acquisition will improve our offering and accelerate our business for decades to come. Warner Bros. has helped define entertainment for more than a century and continues to do so with phenomenal creative executives and production capabilities. With our global reach and proven business model, we can introduce a broader audience to the worlds they create—giving our members more options, attracting more fans to our best-in-class streaming service, strengthening the entire entertainment industry and creating more value for shareholders.”
David Zaslav, President and CEO of Warner Bros. Discovery, said, “Today’s announcement combines two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most. For more than a century, Warner Bros. has thrilled audiences, captured the world’s attention, and shaped our culture. 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 joint press release states that following the acquisition, Netflix subscibers will have more choices and better value: by including extensive film and TV libraries, along with HBO and HBO Max programming.
The transaction is expected to close after the previously announced separation of WBD’s Global Networks division, Discovery Global, into a new publicly traded company, which is now expected to be completed in Q3 2026.
Following the announcement, Netflix shares fell nearly 3% in premarket trading, while Paramount declined 2.2%.
By CEO NA Editorial Staff
