Netflix Acquires Warner Bros in $82.7B Deal for Streaming Giant

Netflix has made a major move in the entertainment industry by acquiring Warner Bros, including HBO and HBO Max, in a colossal $82.7 billion deal. This means that iconic franchises like Game of Thrones, The Sopranos, Harry Potter, and the DC universe will now be part of Netflix’s catalog.

A memo sent to Warner Bros employees outlined that this deal is contingent on the completion of the separation of Discovery Global and Warner Bros Discovery. It reflects the changing landscape of the industry and the evolution of storytelling in the modern era.

The deal, which includes around $10 billion in debt, values Warner Bros at $72 billion. It is expected to be finalized in the third quarter of 2026, after the completion of the Discovery Global separation. Details about potential changes for customers after the deal closes have not been revealed yet.

Netflix secured the deal with a substantial offer of $27.75 per share, with each WBD shareholder set to receive $23.25 in cash and $4.50 in Netflix common stock. Additionally, Netflix has agreed to pay a $5.8 billion reverse breakup fee if the deal is not approved by government regulators.

Netflix Co-CEO Ted Sarandos emphasized the company’s mission to entertain the world and expressed excitement about combining Warner Bros’ rich library with Netflix’s original content. Warner Bros Discovery CEO David Zaslav highlighted the merger as a coming together of two storytelling powerhouses to offer more choices to consumers.

This acquisition followed a heated bidding war between Warner Bros, Paramount, and Comcast. Despite complaints from Paramount about the fairness of the process, Netflix emerged victorious in securing Warner Bros as part of its expanding empire.