The cash and stock transaction is valued at $27.75 per WBD share (subject to a collar as detailed below), with a total enterprise value of approximately $82.7 billion (equity value of $72.0 billion). 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.
This acquisition brings together two pioneering entertainment businesses, combining Netflix's innovation, global reach and best-in-class streaming service with Warner Bros.' century-long legacy of world-class storytelling. Beloved franchises, shows and movies such as The Big Bang Theory, The Sopranos, Game of Thrones, The Wizard of Oz and the DC Universe will join Netflix's extensive portfolio including Wednesday, Money Heist, Bridgerton, Adolescence and Extraction, creating an extraordinary entertainment offering for audiences worldwide.
"Our mission has always been to entertain the world," said Ted Sarandos, co-CEO of Netflix. "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."
"This acquisition will improve our offering and accelerate our business for decades to come," continued Greg Peters, co-CEO of Netflix. "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."
"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," said David Zaslav, President and CEO of Warner Bros. Discovery. "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."
Combination Will Offer More Choice, More Opportunities, More Value
Complementary strengths and assets: Warner Bros.' studios are world-class, with Warner Bros. recognized as a leading supplier of television titles and filmed entertainment. HBO and HBO Max also provide a compelling, complementary offering for consumers. Netflix expects to maintain Warner Bros.' current operations and build on its strengths, including theatrical releases for films.
More choice and greater value for consumers: By adding the deep film and TV libraries and HBO and HBO Max programming, Netflix members will have even more high-quality titles from which to choose. This also allows Netflix to optimize its plans for consumers, enhancing viewing options and expanding access to content.
A stronger entertainment industry: This acquisition will enhance Netflix's studio capabilities, allowing the Company to significantly expand U.S. production capacity and continue to grow investment in original content over the long term which will create jobs and strengthen the entertainment industry.
More opportunities for the creative community: By uniting Netflix's member experience and global reach with Warner Bros.' renowned franchises and extensive library, the Company will create greater value for talent—offering more opportunities to work with beloved intellectual property, tell new stories and connect with a wider audience than ever before.
More value for shareholders: By offering members a wider selection of quality series and films, Netflix expects to attract and retain more members, drive more engagement and generate incremental revenue and operating income. The Company also 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.
Transaction Details and Timing
Under the terms of the agreement, each WBD shareholder will receive $23.25 in cash and $4.501 in shares of Netflix common stock for each share of WBD common stock outstanding at the closing of the transaction. The transaction values Warner Bros. Discovery at $27.75 per share, implying a total equity value of approximately $72.0 billion and an enterprise value of approximately $82.7 billion.
In June 2025, WBD announced plans to separate(opens in a new window) its Streaming & Studios and Global Networks divisions into two separate publicly traded companies. This separation is now expected to be completed in Q3 2026, prior to the closing of this transaction. The newly separated publicly traded company holding the Global Networks division, Discovery Global, will include premier entertainment, sports and news television brands around the world including CNN, TNT Sports in the U.S., and Discovery, free-to-air channels across Europe, and digital products such as Discovery+ and Bleacher Report.
The stock component is subject to a collar under which WBD shareholders will receive Netflix stock valued at $4.50 per share, provided the 15-day volume weighted average price ("VWAP") of Netflix stock price (measured three trading days prior to closing) falls between $97.91 and $119.67. If the VWAP is below $97.91, WBD shareholders will receive 0.0460 Netflix shares for each WBD share. If the VWAP is above $119.67, WBD shareholders will receive 0.0376 Netflix shares for each WBD share.
The transaction was unanimously approved by the Boards of Directors of both Netflix and WBD. In addition to the completion of the separation of Discovery Global (WBD's Global Networks business), completion of the transaction is subject to required regulatory approvals, approval of WBD shareholders and other customary closing conditions. The transaction is expected to close in 12-18 months.
Moelis & Company LLC is acting as Netflix's financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel. Wells Fargo is acting as an additional financial advisor and, along with BNP and HSBC, is providing committed debt financing related to the transaction.
Allen & Company, J.P. Morgan and Evercore are serving as financial advisors to Warner Bros. Discovery and Wachtell Lipton, Rosen & Katz and Debevoise & Plimpton LLP are serving as legal counsel.
Looks like this whole situation is going to burn way more cash than it should. My only hope is that this won't affect even more productions in the near future.
If Paramount were to win, it would be interesting to see what happens to Warner Brothers' major IPs. Harry Potter, DC Comics/Batman/Superman, Game of Thrones, Matrix, & WB Cartoons will all be up for grabs. Paramount really has so few IPs of a similar popularity. Would they be moved to Paramount?
Netflix will certainly move those IPs into streaming. This should be interesting.
On 12/18/2025 at 4:21 PM, Satam said:Same.
Yeah, sorry I suck with typos. Fat thumbs. I had a couple shares of wbd stock and did receive a tender offer for the proposed price so....
3 hours ago, RobertD said:Also, I took an embarrassing amount of time trying to think what the heck the "swc" was, before realizing it was likely a typo and you likely meant the SEC.
Same.
On 12/9/2025 at 9:24 PM, MagnaPrime said:I'm. NOt so sure the fcc or the swc let's this go through. Makes Netflix too powerful.
I think we live in a world where if you grease the right wheels it doesn't matter anymore. Also, I took an embarrassing amount of time trying to think what the heck the "swc" was, before realizing it was likely a typo and you likely meant the SEC.
I'm. NOt so sure the fcc or the swc let's this go through. Makes Netflix too powerful.
*None* of this is a good move and it won't benefit customers regardless of who ends up buying WB. Of course, this has been the plan all along from WB's current leadership - they accidentally made a couple of billion dollar hits despite themselves (and thanks to the hard work of the creatives actually giving a damn about their projects rather than just 'creating content') but they've been looking to strip mine Warners for no good reason. There is absolutely no reason that WB has to be merged with anything - they have plenty of vertical integration, strong IP and (until the current regime) a fairly good (relatively speaking) reputation with creators. The encrapification of the world continues apace... sigh.
17 minutes ago, Emnems80 said:It would be sad if a lot of projects get trashed just for the tax right off. RIP Batgirl.
Honestly, I hope most of the stuff WB is doing is scrapped. A few IPs that I really enjoy are likely to have a rough couple of years because of some of the projects WB has going on.
On 12/5/2025 at 10:46 AM, Jscott991 said:I am curious if Netflix will demand more accountability. All of the major flops these studios have produced have to actually cost something to the bottom line, right? But then again Netflix and Disney+ throw tons of money away on streaming stuff that never seems to produce a pop either.
It would be sad if a lot of projects get trashed just for the tax right off. RIP Batgirl.
4 hours ago, Jscott991 said:I am curious if Netflix will demand more accountability. All of the major flops these studios have produced have to actually cost something to the bottom line, right? But then again Netflix and Disney+ throw tons of money away on streaming stuff that never seems to produce a pop either.
Netflix ain't doing this for charity--they are going to take a good hard look at ALL the IP they are acquiring and they will lean on producers to make it profitable or it ( and they) will get dumped.That's what I meant by "uspets", and NETFLIX is going to want to start making back some of their expense asap. The people making those shows and movies---their jobs just got harder.
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