Netflix has announced a game-changing acquisition that will reshape the streaming industry: a definitive agreement to purchase Warner Bros. Discovery for $82.7 billion. This monumental transaction merges the world’s leading subscription streaming service with one of Hollywood’s most venerable studios, creating an entertainment juggernaut with the resources and content to dominate the global market.
The financial terms establish a valuation of $27.75 per share for Warner Bros. Discovery stock, translating to total equity value of approximately $72.0 billion. The $82.7 billion enterprise value represents a comprehensive assessment of Warner Bros. Discovery’s worth, including its film studios, television networks, streaming services, and extensive intellectual property portfolio. Both companies’ leadership teams have unanimously endorsed the transaction, demonstrating alignment on its strategic value.
Ted Sarandos, Netflix’s co-CEO, expressed excitement about the acquisition’s potential to enhance Netflix’s entertainment offerings. He described how combining Warner Bros.’ legendary catalog—featuring everything from Casablanca to Harry Potter—with Netflix hits like Stranger Things will provide subscribers with an unrivaled selection. This strategy aims to increase subscriber retention and attraction in an increasingly crowded streaming marketplace.
Warner Bros. Discovery CEO David Zaslav viewed the merger as an opportunity to amplify Warner Bros.’ cultural impact. He emphasized that Netflix’s technological capabilities and global reach will enable Warner Bros. content to connect with new generations of viewers. The transaction reflects both companies’ recognition that success in modern entertainment requires both premium content and sophisticated distribution technology.