Netflix has announced the acquisition of Warner Bros. Discovery assets in a major cash and stock deal valued at about 82.7 billion dollars, marking one of the biggest takeovers in the entertainment industry.
Both companies announced the agreement on Friday, confirming that Netflix will acquire Warner Bros., including its film and TV studios, HBO and HBO Max. The deal will only be completed after Warner Bros. Discovery separates its Global Networks division, Discovery Global, into a new publicly listed company by the third quarter of 2026.
The deal values Warner Bros. Discovery at 27.75 dollars per share, giving it an equity value of about 72 billion dollars. Each WBD shareholder will receive $23.25 in cash and $4.50 in Netflix stock for each share.
The companies say the deal will give subscribers more viewing options, increase production capacity in the United States and create more jobs in the industry. Netflix also expects to save between 2 and 3 billion dollars each year by the third year after the deal closes.
