Netflix has signed a definitive agreement to acquire Warner Bros. for $82.7 billion, merging two entertainment giants to enhance content offerings and industry influence.

Target Information

In a groundbreaking move for the entertainment industry, Netflix announced a definitive agreement to acquire Warner Bros., including its film and television studios, as well as HBO and HBO Max, for an enterprise value of $82.7 billion, with an equity value of $72 billion. This acquisition is set to be finalized following the previously announced separation of Warner Bros. Discovery's Global Networks division, which will become the new public company Discovery Global in Q3 2026.

The deal offers a cash and stock transaction valued at $27.75 per share of Warner Bros. Discovery (WBD), where each shareholder will receive $23.25 in cash and $4.50 in Netflix shares, subject to an adjustment mechanism based on Netflix's average stock price prior to closing.

Industry Overview

The streaming industry in the United States has seen substantial growth and transformation over recent years. As consumers shift from traditional cable to on-demand content, companies like