Netflix Warner Acquisition Reshapes Hollywood In $82.7B Deal

In a landmark move for global streaming, the netflix warner acquisition is set to reshape the competitive landscape of film and television entertainment.

Netflix to buy Warner Bros. in $82.7 billion cash-and-stock deal

Netflix, Inc. and Warner Bros. Discovery, Inc. announced on Dec. 5, 2025 that they have signed a definitive agreement for Netflix to acquire Warner Bros., including its film and TV studios, HBO and HBO Max. The cash-and-stock deal values WBD at a total enterprise value of $82.7 billion, with an equity value of $72.0 billion.

Under the agreement, each WBD shareholder will receive $23.25 in cash and $4.50 in Netflix common stock for every WBD share outstanding at closing. That said, the final stock portion is subject to a collar tied to Netflix’s 15-day volume weighted average price, or VWAP, measured three trading days before completion.

Strategic rationale and content powerhouse combination

The transaction will unite Netflix’s global streaming scale and technology with Warner Bros.’ century-long legacy of storytelling and its extensive IP portfolio. Iconic franchises and series such as The Big Bang Theory, The Sopranos, Game of Thrones, The Wizard of Oz and the DC Universe will sit alongside Netflix hits including Wednesday, Money Heist, Bridgerton, Adolescence and Extraction.

According to the companies, Netflix will maintain Warner Bros.’ current operations, including theatrical releases, rather than shifting entirely to streaming. Moreover, the combined group will leverage both Warner’s studio infrastructure and Netflix’s data-driven distribution model to expand global reach and deepen engagement.

Executive vision for the combined company

Ted Sarandos, co-CEO of Netflix, said the goal remains “to entertain the world” and argued the deal strengthens that mission. By pairing Warner Bros.’ vast library—ranging from classics like Casablanca and Citizen Kane to franchises such as Harry Potter and Friends—with Netflix originals like Stranger Things, KPop Demon Hunters and Squid Game, Sarandos said the platform can better serve existing and future audiences.

Co-CEO Greg Peters emphasized that Warner Bros. has helped define entertainment for more than 100 years and continues to do so through its creative executives and production capabilities. However, he stressed that Netflix’s global membership base and proven subscription economics will introduce these worlds to a broader audience, while also reinforcing Netflix as a best-in-class streaming service.

Warner Bros. Discovery perspective

David Zaslav, President and CEO of Warner Bros. Discovery, described the deal as a union of “two of the greatest storytelling companies in the world.” For more than a century, Warner Bros. has shaped culture and captivated audiences worldwide. By joining forces with Netflix, Zaslav said, the combined enterprise will ensure viewers everywhere can continue to access influential stories for generations.

That said, WBD will still move ahead with its plan to separate its Global Networks division into a distinct, publicly traded entity before the transaction closes. This structure aims to sharpen strategic focus for both the streaming-and-studios business being sold and the networks company that will remain independent.

Consumer choice, creative opportunities and industry impact

The companies argue the combination will deliver more choice and greater value for consumers. By layering Warner’s deep film and TV catalog and premium HBO and HBO Max programming onto Netflix’s platform, members will gain access to a larger slate of high-quality titles. Moreover, Netflix expects this expanded library to support flexible plan design, improved discovery and broader content access.

For creators, the deal promises more avenues to develop and exploit intellectual property. By combining Netflix’s global user experience and distribution footprint with Warner Bros.’ renowned franchises and library, the companies expect to offer talent more chances to work with beloved IP, launch new stories and reach larger audiences than before.

The netflix warner acquisition is also framed as a long-term boost to the entertainment industry. Netflix plans to expand U.S. production capacity and continue growing its original content investments, which should create jobs and support a more robust studio ecosystem over time.

Shareholder value and expected synergies

From a financial standpoint, Netflix expects the acquisition to be accretive to GAAP earnings per share by the second year after closing. The company is targeting at least $2-3 billion in annual cost savings by year three, driven by efficiencies across content, operations and technology. However, these synergies are projected without cutting back on creative output, according to management.

By giving subscribers a wider selection of series and films, Netflix anticipates higher member acquisition, stronger retention and deeper engagement. This, in turn, is expected to translate into incremental revenue and operating income, enhancing long-term shareholder returns.

Transaction structure, Discovery Global and collar mechanics

The deal structure links directly to WBD’s previously announced reorganization. In June 2025, WBD unveiled plans to split its Streaming & Studios and Global Networks units into two separately listed companies. This discovery global separation is now expected to complete in Q3 2026, immediately before the Netflix transaction closes.

The newly separated company, Discovery Global, will hold premier entertainment, sports and news television brands such as CNN, TNT Sports in the U.S., and Discovery. It will also own free-to-air channels across Europe and digital products including Discovery+ and Bleacher Report. Moreover, this structure isolates the networks portfolio while allowing the acquired streaming and studios assets to be integrated under Netflix.

Each WBD share is valued at $27.75 in the deal, split between cash and stock. The stock portion is protected by a symmetrical 10% collar. If Netflix’s 15-day VWAP trades between $97.91 and $119.67, WBD investors receive stock worth $4.50 per share. If the VWAP falls below $97.91, shareholders will receive 0.0460 Netflix shares per WBD share; if it rises above $119.67, they will receive 0.0376 shares.

Approvals, regulatory process and closing timeline

The boards of directors of both Netflix and WBD have unanimously approved the transaction. Completion still depends on several conditions, including the finalization of the Discovery Global spin-off, required regulatory clearances and approval from WBD shareholders. However, both parties currently expect the deal to close within 12-18 months, following the Q3 2026 separation.

Given the size of the transaction and its implications for streaming industry consolidation, regulators are likely to scrutinize competitive impacts, especially in the U.S. and Europe. That said, the companies present the acquisition as supportive of a stronger entertainment sector, citing enhanced investment, job creation and broader consumer choice.

Advisers, financing and investor communications

Moelis & Company LLC is acting as financial advisor to Netflix, while Skadden, Arps, Slate, Meagher & Flom LLP serves as legal counsel. Wells Fargo is acting as an additional financial advisor and, together with BNP and HSBC, is providing committed debt financing for the transaction. Moreover, this financing package underpins the cash component owed to WBD shareholders.

On the seller’s side, Allen & Company, J.P. Morgan and Evercore are advising Warner Bros. Discovery, while Wachtell Lipton Rosen & Katz and Debevoise & Plimpton LLP are acting as legal counsel. The collar structure referenced in the agreement reflects a 10% symmetrical band around the agreed stock value per share.

To brief investors, Netflix will hold a conference call today at 5:00am PT / 8:00am ET. A live webcast will be available via the company’s investor relations site at https://ir.netflix.net/. Key contacts for investor relations and media at both organizations, including Lowell Singer, Emily Feingold, Andrew Slabin, Peter Lee and Robert Gibbs, have been made available for follow-up inquiries.

In summary, Netflix’s agreement to acquire Warner Bros. in a cash-and-stock deal valued at an enterprise total of $82.7 billion marks one of the largest entertainment transactions to date, with profound implications for global streaming, content ownership and shareholder value.