Netflix to buy Warner Bros. streaming and studio division in a $82.7 billion deal

OTT giant Netflix entered into a definitive agreement to acquire the legacy Hollywood film studio Warner Bros. Discovery (WBD), including its film and television studios, HBO Max and HBO for an enterprise value of $82.7 billion on Friday, December 5.

Netflix clinched the deal as it outbid Paramount after a weeks-long auction to purchase the American film player’s streaming and studios division, which houses franchises such as Harry Potter, the DC Universe and Game of Thrones.

Under the terms of the agreement, Netflix will buy WBD in a cash and stock transaction valued at $27.75 per share, implying a total equity value of approximately $72 billion and an enterprise value of about $82.7 billion, the OTT giant said in a statement.

Furthermore, 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, it added.

Commenting on the development, Ted Sarandos, co-CEO of Netflix, said, “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 said that the acquisition will improve the streaming service’s offerings and accelerate its business for decades to come, adding that, “Warner Bros. has helped define entertainment for more than a century and continues to do so with phenomenal creative executives and production capabilities.”

“By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come,” said David Zaslav, President and CEO of Warner Bros. Discovery.

WBD had announced its plans to separate its Streaming & Studios and Global Networks division into two separate publicly traded companies in June 2025.

The transaction for Netflix to acquire WBD’s Streaming & Studios business will be completed before the separation, which is anticipated to occur in Q3 2026.

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 USA, and Discovery, free-to-air channels across Europe, as well as digital products such as Discovery+ and Bleacher Report, the statement added.