Netflix is doubling down on its dominance in streaming with a massive acquisition. The OTT giant has announced that it will buy Warner Bros. Discovery’s studios and HBO (with HBO Max) streaming assets in a $72 billion deal, with total enterprise value reaching $82.7 billion including debt. The move gives Netflix control over some of the most valuable content in media history, from blockbuster movies to legendary TV shows, while also boosting its production capacity on an unprecedented scale.
Under the terms of the deal, Warner Bros. Discovery shareholders will receive $23.25 in cash per share, plus $4.50 in Netflix stock, with the stock portion adjusted based on Netflix’s share price at the time of closing. Overall, this works out to around $27.75 per share, a premium that reflects the significant value Netflix sees in the acquisition. The transaction excludes Warner Bros. Discovery’s global cable networks, like CNN and TNT, which are set to be spun off into a separate public company before the deal closes. That spin-off is expected to be completed by Q3 2026.
“By combining Warner Bros.’ incredible library of shows and movies—from timeless classics like Casablanca and Citizen Kane to modern favorites like Harry Potter and Friends—with our culture-defining titles like Stranger Things, KPop Demon Hunters and Squid Game, we’ll be able to do that even better. Together, we can give audiences more of what they love and help define the next century of storytelling,” Ted Sarandos (co-CEO of Netflix) noted.
For Netflix, this acquisition is more than just a content grab, and it could turn into a game-changer for production. The deal brings in Warner Bros.’ vast studio infrastructure, allowing Netflix to scale up both theatrical releases and streaming content production globally. This means more original programming, access to high-profile franchises, and the ability to produce at a scale few competitors can match. Meanwhile, for Warner Bros. Discovery, the deal comes as a relief, helping to ease the company’s heavy debt burden, much of which originated from the 2022 merger that combined WarnerMedia and Discovery.
Financially, Netflix projects $2-3 billion in annual cost savings by the third year after closing, with expectations that
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