The entertainment landscape is set for a seismic shift as Netflix announced a definitive agreement to acquire Warner Bros. Discovery for $82.7 billion. This blockbuster deal unites the streaming revolution with Hollywood tradition, bringing together Netflix’s technological innovation and global reach with Warner Bros.’ legendary content library and production capabilities, including the prestigious HBO brand.
According to the terms of the agreement, Warner Bros. Discovery shareholders will receive $27.75 per share, translating to a total equity value of approximately $72.0 billion. The comprehensive enterprise value of $82.7 billion includes all of Warner Bros. Discovery’s assets, from film studios to cable networks to streaming services. The unanimous support from both companies’ boards of directors underscores the strategic logic of this combination and confidence in its execution.
Netflix co-CEO Ted Sarandos painted an ambitious picture of the merged company’s potential. He described how the acquisition will enable Netflix to offer subscribers an unparalleled selection of content, from cinema’s earliest masterpieces to today’s most popular series and films. By combining Warner Bros.’ historic library with Netflix’s data-driven approach to content creation and recommendation, the company aims to set new standards for entertainment delivery.
Warner Bros. Discovery CEO David Zaslav highlighted the merger’s potential to preserve and amplify Warner Bros.’ cultural impact. He noted that partnering with Netflix provides an opportunity to ensure that Warner Bros.’ content continues to resonate with audiences worldwide while leveraging cutting-edge technology and distribution methods. This transaction represents a forward-looking strategy to thrive in an industry where streaming has become the dominant consumption model.