Netflix to buy Warner Bros. after Discovery separation for equity value of $72B

Netflix (NFLX) and Warner Bros. Discovery (WBD) announced they have entered into a definitive agreement under which Netflix will acquire Warner Bros., including its film and television studios, HBO Max and HBO. The cash and stock transaction is valued at $27.75 per WBD share, subject to a collar, with a total enterprise value of approximately $82.7B and equity value of $72.0B. The transaction 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 Q3 2026. “Our mission has always been to entertain the world,” said Ted Sarandos, co-CEO of Netix. “By combining Warner Bros.’ incredible library of shows and movies-from timeless classics like Casablanca and Citizen Kane to modern favorites like Harry Potter and Friends-with our culture-dening titles like Stranger Things, KPop Demon Hunters and Squid Game, we’ll be able to do that even better. Together, we can give audiences more of what they love and help define the next century of storytelling.”