Historic Move: Netflix to Acquire Warner Bros. Discovery for $82.7B
Early on Friday, Netflix (NFLX) revealed that it would pay $82.7 billion in cash and stock to purchase Warner Bros. Discovery (WBD). The streaming behemoth outbid rival bidder Paramount Skydance (PSKY) to win the deal. In contrast to Netflix and Paramount, Warner Bros.’ shares increased during the day. After several months of talks and several rounds of offers, Netflix and Warner Bros. have reached an agreement.
Netflix Snaps Up HBO, DC, and Harry Potter Rights in Game-Changing WBD Deal
Warner Bros.’ enormous collections of priceless intellectual property would be added to Netflix’s library through the purchase, which is anticipated to be subject to a thorough regulatory examination. The rights to the Harry Potter series, DC comics, including Superman and Batman, and the premium cable network HBO are currently owned by Warner Bros. As a result of the agreement, Netflix will also acquire the streaming service HBO Max, which was formerly its competitor.
Netflix will pay $27.75 in stock and cash for each WBD share. The equity value is $72 billion, and the enterprise value is $82.7 billion. Each Warner Bros. Discovery stakeholder will receive $23.25 in cash and $4.50 in Netflix shares for each share they own as part of the primary stock deal. However, according to CNBC, Paramount’s last-minute bid of $30 per share for the entire company on Thursday night was turned down.
Massive Netflix–Warner Bros. Deal Awaits Discovery Global Breakup
It is anticipated that Netflix and Warner Bros. will complete their deal once WBD’s Global Networks division is scheduled to split apart. The purchase will not be finalized until Discovery Global is split off into a new publicly traded business. In Q3 2026, the spinoff is currently anticipated to be finished.
This acquisition will improve our offering and accelerate our business for decades to come. Warner Bros. has helped define entertainment for more than a century and continues to do so with phenomenal creative executives and production capabilities. With our global reach and proven business model, we can introduce a broader audience to the worlds they create — giving our members more options, attracting more fans to our best-in-class streaming service, strengthening the entire entertainment industry and creating more value for shareholders,
Netflix Co-CEO Greg Peters
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