Netflix buys Warner Bros. Discovery for $82.7 billion

The Warner Bros. Discovery deal is valued at $72 billion at $27.75 per share, representing a total enterprise value of approximately $82.7 billion. The linear TV network business, including CNN, TNT, HGTV, and the Discovery+ service, will be spun off into a separate public company. This process is expected to be completed in the third quarter of 2026.

Netflix management stated that the integration of Warner Bros.' studio business, including continued theatrical releases, will provide subscribers with more content to choose from and lead to annual cost savings of $2 billion to $3 billion. The agreement includes a $5.8 billion penalty clause payable in the event of termination.

Netflix's Ted Sarandos and Greg Peters noted that the acquisition is a strategic opportunity to strengthen the company's position in the global entertainment market through access to Warner Bros.' content library and franchises.

Netflix's acquisition of Warner Bros. Studios will give the company control over renowned franchises such as Harry Potter and DC Comics. Furthermore, it will open the rights to Game of Thrones, currently held by HBO, a Warner Bros. Discovery subsidiary.

Analysts say the deal will significantly strengthen Netflix's competitiveness in the streaming video segment.