International. After several rounds of bids from Netflix, Paramount and Comcast to acquire Warner Bros, including its film and television studios, HBO Max and HBO, it was announced that Netflix won the bid by paying $27.75 per share, in a deal that reaches $82 billion, $72 billion of equity plus debt.
This acquisition unites two pioneering entertainment businesses, combining Netflix's innovation, global reach and world-class streaming service with Warner Bros.'s century-old legacy of world-class storytelling.
Beloved franchises, series and films 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, which includes Wednesday, Money Heist, Bridgerton, Adolescence and Extraction, creating an entertainment offering for global audiences.
"Our mission has always been to entertain the world," said Ted Sarandos, co-CEO of Netflix. By combining Warner Bros.'s incredible collection of series and movies – from timeless classics like Casablanca and Citizen Kane to modern classics like Harry Potter & Friends – with our culture-defining titles like Stranger Things, KPop Demon Hunters and Squid Game, we can do even better. Together, we can offer audiences more of what they love and help define the next century of storytelling.
"The announcement unites two of the world's leading storytelling companies to bring even more people the entertainment they enjoy most," said David Zaslav, chairman and chief executive officer of Warner Bros. Discovery. "For more than a century, Warner Bros. has captivated audiences, captured the world's attention, and shaped our culture. By teaming up with Netflix, we will ensure that people around the world continue to enjoy the world's most impactful stories for generations to come."
The combination will offer more options and more opportunities
Strengths and complementary assets: Warner Bros. studios are top-notch, recognized as leading providers of television and film entertainment titles. HBO and HBO Max also offer an attractive and complementary offer for consumers. Netflix hopes to maintain Warner Bros.'s current operations and consolidate its strengths, including theatrical releases.
More choice and greater value for consumers: By incorporating the extensive film and television libraries and programming of HBO and HBO Max, Netflix members will have even more high-quality titles to choose from. This also allows Netflix to optimize its plans for consumers, improving viewing options and expanding access to content.
A stronger entertainment industry: This acquisition will enhance the capabilities of Netflix's studios, allowing the company to significantly expand its U.S. production capacity and continue to increase investment in original content over the long term, which will create jobs and strengthen the entertainment industry.
More opportunities for the creative community: By bringing together Netflix's member expertise and global reach with Warner Bros.'s renowned franchises and extensive library, the company will create greater value for talent, offering more opportunities to work with cherished intellectual property, tell new stories, and connect with a wider audience than ever before.
More shareholder value: By offering members a wider selection of quality series and movies, Netflix hopes to attract and retain more members, drive greater engagement, and generate incremental revenue and operating profit. The Company also anticipates cost savings of at least $2.0 billion to $3.0 billion annually by the third year and expects the transaction to accrue GAAP earnings per share by the second year.
Transaction details and timelines
Under the terms of the agreement, each WBD shareholder will receive $23.25 in cash and $4.501 in Netflix common stock for each WBD common share outstanding at year-end.
The closing of the transaction. The transaction values Warner Bros. Discovery at $27.75 per share, implying a total equity value of approximately $72 billion and an enterprise value of approximately $82.7 billion.
In June 2025, WBD announced plans to separate its Streaming & Studios and Global Networks divisions into two independent, publicly traded companies. This separation is expected to be completed in the third quarter of 2026, prior to the closing of the transaction. The new publicly traded company, which will control the Global Networks division, Discovery Global, will include world-class entertainment, sports and news television brands such as CNN, TNT Sports in the US and Discovery, broadcast TV channels across Europe and digital products such as Discovery+ and Bleacher Report.
The stock component is subject to a share purchase agreement (collar) whereby WBD shareholders will receive Netflix shares valued at $4.50 per share, provided that the 15-day volume-weighted average price (VWAP) of Netflix stock (measured three business days prior to closing) is between $97.91 and $119.67. If the VWAP is less than $97.91, WBD shareholders will receive 0.0460 Netflix shares for each WBD share. If the VWAP is greater than $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 Netflix and WBD. In addition to the completion of the separation from Discovery Global (WBD's Global Networks division), completion of the transaction is subject to required regulatory approvals, WBD shareholder approval, and other customary closing conditions. The transaction is expected to close within 12 to 18 months.
Paramount does not give up
Although the deal with Netflix was announced on Friday, December 5, on Monday, December 8, just three days later, Paramount launched a hostile takeover bid to take over Warner Bros, offering $30 per share, in cash, in a transaction that exceeds $108 billion.
