Netflix to Buy Warner Bros. for $72 Billion in Hollywood Blockbuster
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Netflix Inc. and Warner Bros. Discovery Inc. announced an agreement under which Netflix will acquire Warner Bros., including its film and television studios, HBO Max and HBO. The cash and stock transaction has a total enterprise value of approximately $82.7 billion (equity value of $72.0 billion). It is expected to close after the previously announced separation of WBD’s Global Networks division, Discovery Global, into a new publicly traded company, which is now expected to be completed in the third quarter of 2026.
“This acquisition will improve our offering and accelerate our business for decades to come,” said Greg Peters, co-chief executive of Netflix, in a statement.
In June 2025, WBD announced plans to separate its Streaming & Studios and Global Networks divisions into two separate publicly traded companies. This separation is now expected to be completed prior to the closing of this transaction. The newly separated publicly traded company holding the Global Networks division, Discovery Global, will include entertainment, sports and news television brands around the world including CNN, TNT Sports in the U.S., and Discovery, free-to-air channels across Europe, along with digital products such as Discovery+ and Bleacher Report.
Netflix expects to maintain Warner Bros.’ current operations and build on its strengths, including theatrical releases for films. It will also enhance Netflix’s studio capabilities, allowing significantly expanded U.S. production capacity and added investment into original content over the long term. The acquisition is expected to generate least $2-3 billion of cost savings per year by the third year.
The transaction was unanimously approved by the boards of directors of both Netflix and WBD. It is subject to required regulatory approvals, approval of WBD shareholders and other customary closing conditions. The transaction is expected to close in 12-18 months.
Moelis & Company LLC is acting as Netflix’s financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel. Wells Fargo is acting as an additional financial advisor and, along with BNP and HSBC, is providing committed debt financing related to the transaction.
Allen & Company, J.P. Morgan and Evercore are serving as financial advisors to Warner Bros. Discovery and Wachtell Lipton, Rosen & Katz and Debevoise & Plimpton LLP are serving as legal counsel.
Information for this article was sourced from Netflix.
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