Netflix will acquire Warner Bros., including its film and TV studios, HBO, and HBO Max, in a cash-and-stock transaction valuing WBD at an enterprise value of $82.7 billion (equity value $72 billion), or $27.75 per share. The deal is expected to close in 3Q26, following WBD's planned spinoff of its Global Networks division into a separate public company ("Discovery Global"). The move comes just months after Paramount-Skydance made its own bid for WBD.

The Netflix-WBD deal unites the streaming platform with a century-deep library and franchises such as DC, Harry Potter, Game of Thrones, The Sopranos, and The Big Bang Theory.

Netflix wrote in a statement that the deal will boost its content offering, expand production capacity, and improve long-term growth:

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.

Here's a snapshot of the deal terms:

• Each WBD share converts into $23.25 in cash plus $4.50 in Netflix stock

• Boards of both companies unanimously approved the transaction

• Closing in 12–18 months, pending regulatory review and WBD shareholder approval

• Bankers for NFLX: Moelis, Skadden; additional financing by Wells Fargo, BNP, HSBC

• Bankers for WBD: Allen & Co., J.P. Morgan, Evercore; legal counsel Wachtell and Debevoise

Netflix outbid other offers, including those from Paramount-Skydance and Comcast, earlier this year.

Bloomberg noted that Hollywood is far from thrilled about this new Netflix–WBD marriage:

And the winner is… Netflix.

Warner Bros. Discovery began exclusive negotiations to sell its film and TV studios and HBO Max to Netflix, people familiar said — a sign that the streaming giant pulled ahead of Paramount-Skydance and Comcast. A deal would reshape the entertainment landscape and mark a major strategic shift for Netflix, already Hollywood's most valuable company. Paramount called the sale process "tainted," while two-time Oscar-winner Jane Fonda used a stronger word for its likely impact on the industry: "catastrophic."

Founded as a DVD-by-mail service, Netflix first crushed video chain Blockbuster - and is now doing the same to Hollywood by largely refusing to release films in theaters. The deal would position Netflix as a true studio heavyweight. Of course, all of this still hinges on regulatory approval, with California Republican Darrell Issa already objecting to any potential Netflix takeover of Warner Bros.