Netflix to acquire Warner Bros and HBO Max in $82.7 billion entertainment mega-deal

Netflix confirms $82.7 billion agreement to purchase Warner Bros and HBO Max

Netflix and Warner Bros. Discovery have officially confirmed an agreement for Netflix to purchase Warner Bros., including its film and TV studios, HBO Max, and HBO, in a transaction valued at approximately $82.7 billion. The equity value of the deal is estimated at $72 billion.

The acquisition follows a competitive bidding process involving Netflix, Paramount’s Skydance, and Comcast. The companies entered exclusive negotiations Thursday before announcing the final agreement.

Under the terms, WBD shareholders will receive $23.25 in cash and $4.50 in Netflix stock per share once the deal closes. The companies expect the acquisition to be finalized within 12 to 18 months, after Warner Bros. Discovery completes the previously announced spin-off of its TV networks division, Discovery Global, anticipated in Q3 2026.

Netflix stated it plans to continue Warner Bros.’ existing operations, including theatrical releases through 2029. In the short term, HBO Max will remain a standalone service, while Netflix prepares to integrate HBO and HBO Max titles into its streaming library. Netflix estimates the merger will generate $2–$3 billion in annual cost savings by the third year after completion.

Both companies’ boards unanimously approved the agreement, which remains subject to regulatory review, WBD shareholder approval, and the successful completion of the Discovery Global separation.

Netflix co-CEOs Ted Sarandos and Greg Peters praised the merger’s potential to unite Netflix’s global streaming platform with Warner Bros.’ century-spanning film and television legacy. Sarandos highlighted that beloved Warner Bros. titles — from Casablanca and Citizen Kane to Harry Potter and Friends — would eventually sit alongside Netflix hits such as Stranger Things, Bridgerton, KPop Demon Hunters, and Squid Game.

Warner Bros. Discovery CEO David Zaslav described the merger as a major step for two influential entertainment companies and emphasized the potential to elevate storytelling on a global scale.

The move comes 15 years after former Time Warner chief Jeff Bewkes famously dismissed Netflix as comparable to “the Albanian army” in terms of industry threat — a comment that has since become ironic given Netflix’s current dominance and its purchase of Warner Bros.

If completed, the acquisition will combine expansive content libraries, major film franchises, global distribution infrastructure, and two of the industry’s most recognized brands.