In a move that sent shockwaves through the entertainment industry, Netflix revealed its intention to acquire Warner Bros. Discovery for $82.7 billion. The definitive agreement combines the streaming leader’s technological prowess and subscriber base with Warner Bros.’ unparalleled content library and production expertise, creating what could become the most dominant force in global entertainment.
The acquisition structure provides Warner Bros. Discovery shareholders with $27.75 per share, culminating in a total equity value of approximately $72.0 billion. The $82.7 billion enterprise value encompasses all aspects of Warner Bros. Discovery’s operations, including its valuable HBO franchise, extensive film library, and production facilities. Both companies’ boards have unanimously endorsed the transaction, setting the stage for what promises to be an intensive regulatory review process.
In discussing the strategic rationale for the acquisition, Netflix co-CEO Ted Sarandos emphasized the complementary nature of the two companies’ assets. He noted that Warner Bros.’ classic films, blockbuster franchises, and prestige television programming will enhance Netflix’s already strong content slate, providing subscribers with even greater variety and quality. The combined entity will have unprecedented resources to invest in new content creation while leveraging a deep catalog of proven hits.
Warner Bros. Discovery CEO David Zaslav expressed optimism about the merger’s prospects, viewing it as an opportunity to extend Warner Bros.’ storytelling tradition into the streaming era. He highlighted that Netflix’s global distribution network will enable Warner Bros. content to reach audiences in markets that were previously difficult to access. The transaction represents both companies’ commitment to adapting to changing consumer preferences while maintaining creative excellence.