Netflix to acquire Warner Bros. for $72 billion in a deal that could reshape Hollywood
In a bold move that could reshape the entertainment landscape, Netflix has announced its acquisition of Warner Bros. from Warner Bros. Discovery for an impressive equity value of $72 billion, marking the streaming giant’s largest acquisition to date and one of the biggest in entertainment history. This cash-and-stock deal, which carries a total enterprise value of $82.7 billion, is poised to significantly enhance Netflix’s content offerings by integrating Warner Bros.’ extensive library, including iconic franchises like “Harry Potter,” beloved sitcoms such as “Friends,” and acclaimed HBO series. The merger is expected to close after Warner Bros. Discovery completes the spin-off of its Global Networks division into a separate publicly traded entity, Discovery Global, anticipated by the third quarter of 2026.
Netflix co-CEO Ted Sarandos emphasized that this acquisition aligns with the company’s mission to entertain audiences worldwide, stating that the combination of Warner Bros.’ rich catalog with Netflix’s original programming will allow the platform to deliver “more of what they love.” By merging classics like “Citizen Kane” with contemporary hits such as “Stranger Things” and “Squid Game,” Netflix aims to create a more diverse and appealing content slate. The deal not only enhances Netflix’s library but also expands its production capabilities, allowing the company to establish a stronger theatrical presence, an area where it has historically lagged behind competitors like Disney. With the potential to generate $2-3 billion in annual cost savings and boost earnings within two years, the acquisition is a strategic move for Netflix as it seeks to solidify its position in an increasingly competitive streaming market.
As the deal awaits regulatory approval from entities such as the Department of Justice and the Federal Trade Commission, it has drawn attention from various stakeholders, including Elon Musk, who recently urged his followers on X (formerly Twitter) to cancel their Netflix subscriptions in light of the acquisition. This sentiment reflects the growing scrutiny and debate surrounding consolidation in the entertainment industry, particularly as Netflix prepares to integrate a wealth of legacy content that could reshape viewer experiences. If approved, Netflix subscribers can expect a significant expansion of premium content options, further entrenching the platform as a dominant force in the global entertainment arena.
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Elon Musk urged his X followers to cancel their Netflix subscriptions on Wednesday.
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Netflix is buying Warner Bros., adding HBO and major franchises like “Harry Potter” to its content slate.
Netflix said the deal has an equity value of $72 billion, its biggest ever acquisition.
The deal boosts Netflix’s studio power, expanding its production capacity and theatrical output.
Netflix is taking a massive swing at the future of entertainment.
The streaming giant is making the biggest acquisition in its history — and one of the largest ever in entertainment — announcing Friday that it has struck a deal to acquire Warner Bros. from Warner Bros. Discovery (WBD) for an equity value of $72 billion.
The cash-and-stock deal, which has a total enterprise value of $82.7 billion, will bring together Netflix’s streaming platform with Warner Bros.’ century-old studio, HBO, HBO Max, and some of the most iconic franchises in film and television.
The acquisition is expected to close after WBD spins off its Global Networks division into a separate publicly traded company, Discovery Global, a process expected to happen in the third quarter of 2026.
‘Our mission has always been to entertain the world’
Netflix co-CEO Ted Sarandos said the merger strengthens the company’s core mission.
He called Warner Bros.’ catalog “incredible” and said that bringing together classics such as “Citizen Kane” with Netflix hits like “Stranger Things,” “KPop Demon Hunters,” and “Squid Game” will allow the company to entertain the world “even better.”
Sarandos said this merger will let Netflix give audiences “more of what they love” while helping shape the next century of global storytelling.
Netflix plans to preserve Warner Bros.’ existing operations, including its theatrical release pipeline.
Why Netflix wants this deal
Warner Bros. grants Netflix access to some of the most recognizable titles in modern entertainment, including enduring sitcoms like “Friends” and “The Big Bang Theory,” as well as prestige television from HBO, franchises like “Harry Potter,” and classic movies like “The Wizard of Oz” and “Casablanca.”
The deal also significantly expands Netflix’s production capabilities in the US and establishes the company as a more powerful theatrical pipeline.
While Netflix built its empire on original programming, it has long lacked the kind of heritage intellectual property that more established studios, such as Disney, have.
If regulators approve the deal, Netflix subscribers are likely to get a much wider selection of premium content on the platform.
Netflix expects the acquisition to deliver $2-3 billion in annual cost savings by the third year and to boost earnings by the second year.
WBD shareholders will receive $23.25 in cash per share and $4.501 in Netflix stock, Netflix said. The agreement values WBD at $27.75 per share.
Before the acquisition closes, WBD will spin off Discovery Global — a company that will house CNN, TNT Sports, Discovery Channel, Discovery+, and Bleacher Report.
Regulators are expected to scrutinize the deal closely. It still requires approval from the Department of Justice, the Federal Trade Commission, and WBD shareholders.
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