Netflix to acquire Warner Bros. in US$82.7 billion deal

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Netflix announced a definitive agreement to buy the Warner Bros. division from Warner Bros. Discovery (WBD) for a total enterprise value of approximately US$82.7 billion (around CA$114.2 billion). The blockbuster cash and stock transaction includes Warner Bros.' film and television studios, as well as HBO Max and HBO. This strategic move is set to close after WBD's Global Networks division, Discovery Global, spins off into a separate public company in the third quarter of 2026.

The acquisition unites Netflix's leading global streaming service with Warner Bros.' vast, century-old library. Franchises like Game of Thrones, the DC Universe, and Harry Potter will now join Netflix's global hits like Stranger Things and Squid Game. Both companies emphasized that the combination will offer consumers more choice and value while strengthening the overall entertainment industry. Netflix plans to maintain Warner Bros.' current operations, including theatrical film releases.

WBD shareholders will receive US$23.25 (~CA$32.09) in cash and US$4.50 (~CA$6.21) in Netflix stock for each share, valuing WBD at US$27.75 (~CA$38.30) per share. The transaction is unanimously approved by both boards and is expected to close in 12 to 18 months, pending regulatory approvals and the completion of the Discovery Global separation.

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