Netflix has announced a definitive agreement to acquire Warner Bros. Discovery's (WBD) film and television studios, along with its streaming platforms HBO Max and HBO, in a landmark $82.7 billion deal.
The transaction, valued at $27.75 per WBD share, will be completed after WBD finalizes its previously announced plan to spin off its global networks division—comprising CNN, TNT, Discovery, and other cable channels—into a separate publicly traded company named Discovery Global. The acquisition is expected to close in the third quarter of 2026, subject to regulatory approvals and shareholder votes.
The deal was reached after a competitive bidding war, with Netflix outbidding Paramount Skydance and Comcast.
Each WBD shareholder will receive $23.25 in cash and $4.501 in Netflix stock per share, with the stock component subject to a collar mechanism based on Netflix’s stock price at closing. The transaction is expected to be accretive to Netflix’s earnings per share by year two and generate at least $2–3 billion in annual cost savings by the third year.
Netflix co-CEOs Ted Sarandos and Greg Peters stated the merger will help define the next century of storytelling by combining Netflix’s global reach with Warner Bros.’ century-long legacy of content creation.
Warner Bros. Discovery CEO David Zaslav will continue managing the company through the spin-off of Discovery Global until the deal closes.
Discovery Global, led by current WBD CFO Gunnar Wiedenfels, will include CNN, TNT Sports in the U.S., Discovery channels, free-to-air European channels, and digital platforms like Discovery+ and Bleacher Report.
The separation of Discovery Global is now expected to be completed in Q3 2026, prior to the closing of the Netflix acquisition.
The deal has drawn attention for its potential regulatory scrutiny, with Paramount alleging an unfair bidding process and concerns over Netflix’s growing dominance in the streaming industry.
