In a move that is set to redefine the global entertainment landscape, streaming behemoth Netflix announced a monumental acquisition on Friday. The company has agreed to purchase media giant Warner Bros. Discovery (WBD) for a staggering enterprise value of $82.7 billion.
The Structure of the Historic Deal
The agreement, structured as a cash and stock transaction, values Warner Bros. Discovery at $27.75 per share. According to the detailed terms, shareholders of WBD will receive $23.25 in cash and $4.50 in Netflix stock for each share they own at the closing of the deal. However, the transaction will only take effect following the completion of a significant corporate separation. Warner Bros. Discovery must first spin off its Global Networks division, known as Discovery Global, a process scheduled to be finalized in the third quarter of 2026.
A New Content Powerhouse is Born
This acquisition represents a seismic shift, merging Netflix's dominant global streaming platform with Warner Bros.' century-long legacy in film and television. The deal brings an unparalleled catalog of iconic titles under the Netflix umbrella. Subscribers can look forward to accessing legendary HBO series like Game of Thrones and The Sopranos, beloved sitcoms such as The Big Bang Theory and Friends, the entire DC Universe of superhero films, and cinematic classics from Casablanca to the Harry Potter franchise.
Netflix's co-CEO, Ted Sarandos, framed the merger as a fulfillment of the company's core mission. "Our mission has always been to entertain the world," Sarandos stated. "By combining Warner Bros.' incredible library—from timeless classics to modern favorites—with our own culture-defining titles like Stranger Things and Squid Game, we'll be able to do that even better."
Strategic Benefits and Industry Impact
The leadership of both companies highlighted the strategic and financial upsides of the merger. Netflix's other co-CEO, Greg Peters, emphasized that the acquisition would "improve our offering and accelerate our business for decades to come." He added that the move would strengthen the broader entertainment industry and generate greater value for shareholders. Netflix projects significant cost savings of $2 to $3 billion annually by the third year post-acquisition, with a positive impact on earnings expected as early as the second year.
For Warner Bros. Discovery, the deal dramatically expands the global reach of its vast content library. David Zaslav, President and CEO of WBD, commented, "Today's announcement combines two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most."
This blockbuster deal is poised to create the world's largest content and streaming entity, significantly altering competitive dynamics in the increasingly crowded OTT space, especially in key markets like India where content is king.
