Warner Bros acquisition: Netflix wins bidding war with $82.7 billion; executive deal talk next

Netflix has announced a monumental $82.7 billion acquisition of Warner Bros., including HBO and HBO Max. This strategic move integrates Warner Bros.' extensive film and television library with Netflix's global streaming platform, promising to significantly enhance content offerings and accelerate business growth for decades to come.
Netflix on Friday has acquired Warner Bros. in a blockbuster $82.7 billion transaction after beating multiple bidders for the Hollywood giant’s film and TV assets, including HBO and HBO Max. The deal, valued at $27.75 per share, will take effect once WBD completes the planned spin-off of its Global Networks division, Discovery Global, expected in the third quarter of 2026. With the acquisition, Netflix will absorb iconic Warner Bros franchises such as Game of Thrones, Harry Potter, the DC Universe, The Sopranos and The Big Bang Theory, merging them with hits like Stranger Things, Money Heist and Wednesday. “Our mission has always been to entertain the world,” said Netflix co-CEO Ted Sarandos. “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.” Co-CEO Greg Peters said the deal will “improve our offering and accelerate our business for decades to come,” adding that Netflix will “strengthen the entire entertainment industry and create more value for shareholders.” WBD chief David Zaslav said the merger unites “two of the greatest storytelling companies in the world,” ensuring audiences “will continue to enjoy the world’s most resonant stories for generations to come.” Under the transaction, WBD shareholders will receive $23.25 in cash and $4.50 worth of Netflix stock per share, with the stock component subject to a collar based on Netflix’s trading price. Netflix expects to save $2-3 billion annually by year three and said the deal will be earnings accretive by year two. Both boards have unanimously approved the acquisition. Regulatory review and shareholder approval are next, followed by executive-level negotiations on integration, operational planning and leadership roles. A webcast is scheduled at 5:00am PT/8:00am ET to discuss the transaction.
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