Netflix to acquire Warner Bros Discovery for $72bn

Netflix has agreed to acquire Warner Bros Discovery’s studios and streaming business, including HBO and HBO Max, in a cash-and-stock deal valued at approximately $82.7 billion (equity value of $72.0 billion).

This acquisition brought together Netflix’s global streaming reach and Warner Bros.’ iconic franchises, expanding the company’s content offerings and production capacity.

The deal included Warner Bros. film and TV studios, HBO, HBO Max, and extensive libraries, including classics like Casablanca and The Wizard of Oz.

WBD shareholders will receive $23.25 cash and Netflix stock valued at around $4.50 per share.

According to Netflix co-CEO Ted Sarandos, the acquisition focuses on entertaining the world better with combined libraries.

“By combining Warner Bros.’ incredible library of shows and movies… with our culture-defining titles… We’ll be able to do that even better,” he said.

The deal is expected to close in 12-18 months, pending regulatory approvals and WBD shareholder approval, and marks a significant consolidation in the entertainment industry, bolstering Netflix’s position against competitors like Disney+ and Prime Video.