Netflix buys Warner Bros. Discovery assets for $72B: What's included?
What's the story
Netflix has announced a major acquisition, buying parts of Warner Bros. Discovery (WBD) for $72 billion. The deal comes after a competitive bidding process with Paramount Skydance and Comcast also in the running for these legacy assets. The deal is expected to finalize following the earlier announced spin-off of WBD's Global Networks division, Discovery Global, into a new publicly traded company, now projected to be completed in Q3 2026. Discovery Global will include TV networks such as TNT and CNN.
Acquisition details
Deal structure and future plans
The deal, which is a mix of cash and stock, values WBD at $27.75 per share. This gives the transaction an equity value of $72 billion and a total enterprise value of about $82.7 billion. Netflix will get Warner Bros.' film studio and HBO Max streaming service as part of the acquisition. The companies expect the transaction to close in 12-18 months after separating their TV networks in Q3 2026.
Acquisition rationale
Netflix's co-CEO addresses acquisition concerns
Addressing concerns over the acquisition, Netflix co-CEO Ted Sarandos said, "We already have incredible shows and movies and a great business model." He added that this is a "rare opportunity" that will help them achieve their mission of entertaining the world with great stories. Each Warner Bros. Discovery shareholder will get $23.25 in cash and $4.50 in Netflix common stock for each share of WBD common stock outstanding after the deal closes.
Information
The deal has got regulatory approval
The deal has been unanimously approved by the boards of directors of both companies, but is still subject to regulatory approval and approval from WBD shareholders.