Netflix is taking a massive swing at the future of entertainment.
The streaming giant is making the biggest acquisition in its history — and one of the largest ever in entertainment — announcing Friday that it has struck a deal to acquire Warner Bros. from Warner Bros. Discovery (WBD) for an equity value of $72 billion.
The cash-and-stock deal, which has a total enterprise value of $82.7 billion, will bring together Netflix’s streaming platform with Warner Bros.’ century-old studio, HBO, HBO Max, and some of the most iconic franchises in film and television.
The acquisition is expected to close after WBD spins off its Global Networks division into a separate publicly traded company, Discovery Global, a process expected to happen in the third quarter of 2026.
‘Our mission has always been to entertain the world’
Netflix co-CEO Ted Sarandos said the merger strengthens the company’s core mission.
He called Warner Bros.’ catalog “incredible” and said that bringing together classics such as “Citizen Kane” with Netflix hits like “Stranger Things,” “KPop Demon Hunters,” and “Squid Game” will allow the company to entertain the world “even better.”
Sarandos said this merger will let Netflix give audiences “more of what they love” while helping shape the next century of global storytelling.
Netflix plans to preserve Warner Bros.’ existing operations, including its theatrical release pipeline.
Why Netflix wants this deal
Warner Bros. grants Netflix access to some of the most recognizable titles in modern entertainment, including enduring sitcoms like “Friends” and “The Big Bang Theory,” as well as prestige television from HBO, franchises like “Harry Potter,” and classic movies like “The Wizard of Oz” and “Casablanca.”
While Netflix built its empire on original programming, it has long lacked the kind of heritage intellectual property that more established studios, such as Disney, have.
If regulators approve the deal, Netflix subscribers are likely to get a much wider selection of premium content on the platform.
Netflix expects the acquisition to deliver $2 billion to 3 billion in annual cost savings by the third year and to boost earnings by the second year.
WBD shareholders will receive $23.25 in cash per share and $4.501 in Netflix stock, Netflix said. The agreement values WBD at $27.75 per share.
Before the acquisition closes, WBD will spin off Discovery Global — a company that will house CNN, TNT Sports, Discovery Channel, Discovery+, and Bleacher Report.
Regulators are expected to scrutinize the deal closely. It still requires approval from the Department of Justice, the Federal Trade Commission, and WBD shareholders.
Shares of both Netflix and Warner Bros. Discovery were little moved in premarket trade on Friday, with Netflix set to open around 2.4% lower, and Warner Bros. set for a 1% gain.
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