Netflix Inc (NASDAQ:NFLX, XETRA:NFC) and Warner Bros Discovery Inc (NASDAQ:WBD, XETRA:J5A) announced an agreement under which Netflix will acquire Warner Bros, including its film and television studios, HBO Max, and HBO, in a $72 billion deal.
The deal combines Netflix’s global streaming platform with Warner Bros’ film and television operations and legacy franchises.
Under the terms of the agreement, each WBD shareholder will receive $23.25 in cash and $4.50 in Netflix stock per share.
The stock component is subject to a pricing collar, and the transaction’s completion is contingent on regulatory approvals, WBD shareholder approval, and the planned separation of WBD’s Global Networks division into a new publicly traded company, Discovery Global, expected in the third quarter of 2026.
The deal brings Warner Bros’ franchises, including Game of Thrones, The Wizard of Oz, and the DC Universe, together with Netflix’s library, which includes titles such as Stranger Things and Money Heist.
Netflix said it plans to maintain Warner Bros’ current operations, including theatrical releases, while expanding production capacity and investment in original content.
The company expects the merger to expand its content library and provide more opportunities for the creative community. The company also anticipates cost savings of $2 to $3 billion annually by the third year, with the transaction expected to be accretive to GAAP earnings per share by the second year.
“This acquisition will improve our offering and accelerate our business for decades to come,” Netflix co-CEO Greg Peters said in a statement.
The acquisition is anticipated to close within 12 to 18 months.
Wedbush analysts noted that the deal follows reports of a competitive bidding process involving Paramount and Comcast before Warner Bros Discovery entered exclusive negotiations with Netflix.
The analysts highlighted concerns about potential impacts on the theatrical market, noting that Warner Bros.’ theatrical slate has already been negotiated through 2029.
Any buyer, including Netflix, would be required to honor those commitments. Netflix has indicated it will continue to support scheduled theatrical releases.
However, Wedbush emphasized that industry and government concerns remain. “Should the exclusive negotiations with Netflix lead to a proposed sale, the regulatory process would be lengthy and difficult and may ultimately block the sale without clear assurances from the studio side,” the analysts wrote.
Shares of Netflix fell 4.1% to about $99 pre-market, while Warner Bros Discovery stock added 4.4% at about $26.