In a landmark transfer for world streaming, the netflix warner acquisition is about to reshape the aggressive panorama of movie and tv leisure.
Netflix to purchase Warner Bros. in $82.7 billion cash-and-stock deal
Netflix, Inc. and Warner Bros. Discovery, Inc. introduced on Dec. 5, 2025 that they’ve signed a definitive settlement for Netflix to amass Warner Bros., together with its movie and TV studios, HBO and HBO Max. The cash-and-stock deal values WBD at a complete enterprise worth of $82.7 billion, with an fairness worth of $72.0 billion.
Underneath the settlement, every WBD shareholder will obtain $23.25 in money and $4.50 in Netflix widespread inventory for each WBD share excellent at closing. That stated, the ultimate inventory portion is topic to a collar tied to Netflix’s 15-day quantity weighted common worth, or VWAP, measured three buying and selling days earlier than completion.
Strategic rationale and content material powerhouse mixture
The transaction will unite Netflix’s world streaming scale and expertise with Warner Bros.’ century-long legacy of storytelling and its in depth IP portfolio. Iconic franchises and collection corresponding to The Large Bang Idea, The Sopranos, Sport of Thrones, The Wizard of Oz and the DC Universe will sit alongside Netflix hits together with Wednesday, Cash Heist, Bridgerton, Adolescence and Extraction.
Based on the businesses, Netflix will preserve Warner Bros.’ present operations, together with theatrical releases, somewhat than shifting totally to streaming. Furthermore, the mixed group will leverage each Warner’s studio infrastructure and Netflix’s data-driven distribution mannequin to develop world attain and deepen engagement.
Government imaginative and prescient for the mixed firm
Ted Sarandos, co-CEO of Netflix, stated the purpose stays “to entertain the world” and argued the deal strengthens that mission. By pairing Warner Bros.’ huge library—starting from classics like Casablanca and Citizen Kane to franchises corresponding to Harry Potter and Buddies—with Netflix originals like Stranger Issues, KPop Demon Hunters and Squid Sport, Sarandos stated the platform can higher serve current and future audiences.
Co-CEO Greg Peters emphasised that Warner Bros. has helped outline leisure for greater than 100 years and continues to take action by means of its artistic executives and manufacturing capabilities. Nonetheless, he harassed that Netflix’s world membership base and confirmed subscription economics will introduce these worlds to a broader viewers, whereas additionally 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 best storytelling corporations on the planet.” For greater than a century, Warner Bros. has formed tradition and captivated audiences worldwide. By becoming a member of forces with Netflix, Zaslav stated, the mixed enterprise will guarantee viewers in every single place can proceed to entry influential tales for generations.
That stated, WBD will nonetheless transfer forward with its plan to separate its World Networks division into a definite, publicly traded entity earlier than the transaction closes. This construction goals to sharpen strategic focus for each the streaming-and-studios enterprise being bought and the networks firm that can stay unbiased.
Shopper alternative, artistic alternatives and business influence
The businesses argue the mix will ship extra alternative and higher worth for shoppers. By layering Warner’s deep movie and TV catalog and premium HBO and HBO Max programming onto Netflix’s platform, members will achieve entry to a bigger slate of high-quality titles. Furthermore, Netflix expects this expanded library to help versatile plan design, improved discovery and broader content material entry.
For creators, the deal guarantees extra avenues to develop and exploit mental property. By combining Netflix’s world consumer expertise and distribution footprint with Warner Bros.’ famend franchises and library, the businesses anticipate to supply expertise extra probabilities to work with beloved IP, launch new tales and attain bigger audiences than earlier than.
The netflix warner acquisition can be framed as a long-term enhance to the leisure business. Netflix plans to develop U.S. manufacturing capability and proceed rising its authentic content material investments, which ought to create jobs and help a extra sturdy studio ecosystem over time.
Shareholder worth and anticipated synergies
From a monetary standpoint, Netflix expects the acquisition to be accretive to GAAP earnings per share by the second yr after closing. The corporate is focusing on not less than $2-3 billion in annual price financial savings by yr three, pushed by efficiencies throughout content material, operations and expertise. Nonetheless, these synergies are projected with out reducing again on artistic output, in line with administration.
By giving subscribers a wider number of collection and movies, Netflix anticipates increased member acquisition, stronger retention and deeper engagement. This, in flip, is predicted to translate into incremental income and working revenue, enhancing long-term shareholder returns.
Transaction construction, Discovery World and collar mechanics
The deal construction hyperlinks on to WBD’s beforehand introduced reorganization. In June 2025, WBD unveiled plans to separate its Streaming & Studios and World Networks items into two individually listed corporations. This discovery world separation is now anticipated to finish in Q3 2026, instantly earlier than the Netflix transaction closes.
The newly separated firm, Discovery World, will maintain premier leisure, sports activities and information tv manufacturers corresponding to CNN, TNT Sports activities within the U.S., and Discovery. It can additionally personal free-to-air channels throughout Europe and digital merchandise together with Discovery+ and Bleacher Report. Furthermore, this construction isolates the networks portfolio whereas permitting the acquired streaming and studios property to be built-in below Netflix.
Every WBD share is valued at $27.75 within the deal, break up between money and inventory. The inventory portion is protected by a symmetrical 10% collar. If Netflix’s 15-day VWAP trades between $97.91 and $119.67, WBD buyers obtain inventory price $4.50 per share. If the VWAP falls beneath $97.91, shareholders will obtain 0.0460 Netflix shares per WBD share; if it rises above $119.67, they are going to obtain 0.0376 shares.
Approvals, regulatory course of and shutting timeline
The boards of administrators of each Netflix and WBD have unanimously permitted the transaction. Completion nonetheless depends upon a number of circumstances, together with the finalization of the Discovery World spin-off, required regulatory clearances and approval from WBD shareholders. Nonetheless, each events at present anticipate the deal to shut inside 12-18 months, following the Q3 2026 separation.
Given the scale of the transaction and its implications for streaming business consolidation, regulators are prone to scrutinize aggressive impacts, particularly within the U.S. and Europe. That stated, the businesses current the acquisition as supportive of a stronger leisure sector, citing enhanced funding, job creation and broader shopper alternative.
Advisers, financing and investor communications
Moelis & Firm LLC is appearing as monetary advisor to Netflix, whereas Skadden, Arps, Slate, Meagher & Flom LLP serves as authorized counsel. Wells Fargo is appearing as a further monetary advisor and, along with BNP and HSBC, is offering dedicated debt financing for the transaction. Furthermore, this financing bundle underpins the money element owed to WBD shareholders.
On the vendor’s aspect, Allen & Firm, J.P. Morgan and Evercore are advising Warner Bros. Discovery, whereas Wachtell Lipton Rosen & Katz and Debevoise & Plimpton LLP are appearing as authorized counsel. The collar construction referenced within the settlement displays a 10% symmetrical band across the agreed inventory worth per share.
To temporary buyers, Netflix will maintain a convention name at this time at 5:00am PT / 8:00am ET. A reside webcast might be accessible through the corporate’s investor relations website at https://ir.netflix.web/. Key contacts for investor relations and media at each organizations, together with Lowell Singer, Emily Feingold, Andrew Slabin, Peter Lee and Robert Gibbs, have been made accessible for follow-up inquiries.
In abstract, Netflix’s settlement to amass Warner Bros. in a cash-and-stock deal valued at an enterprise whole of $82.7 billion marks one of many largest leisure transactions to this point, with profound implications for world streaming, content material possession and shareholder worth.