Netflix to Acquire Warner Bros. for a Total Enterprise Value of $82.7 Billion, Including HBO and HBO Max
On December 5, 2025, Netflix, Inc. and Warner Bros. Discovery, Inc. announced in Hollywood, California, that they have entered into a definitive agreement under which Netflix will acquire Warner Bros., including its film and television studios, HBO Max and HBO. The transaction values Warner Bros. Discovery at $27.75 per share, for a total enterprise value of approximately $82.7 billion and an equity value of $72.0 billion.
Under the agreement, each Warner Bros. Discovery shareholder will receive $23.25 in cash and $4.50 in shares of Netflix common stock for each share held at closing. The stock component is subject to a collar: if the 15-day volume-weighted average price of Netflix stock, measured three trading days before closing, is between $97.91 and $119.67, shareholders receive stock valued at $4.50 per share; below the floor they receive 0.0460 Netflix shares per share, and above the cap 0.0376 shares.
The transaction is conditioned on Warner Bros. Discovery first separating its Global Networks division into a new publicly traded company, Discovery Global, a separation now expected to be completed in the third quarter of 2026. Discovery Global will hold brands including CNN, TNT Sports in the United States, Discovery, Discovery+ and Bleacher Report. The boards of both companies unanimously approved the transaction, which also requires regulatory approvals and approval by Warner Bros. Discovery shareholders and is expected to close in 12 to 18 months, after the separation.
Netflix said it expects to maintain Warner Bros.' current operations, including theatrical releases for films, to realize at least $2 billion to $3 billion of cost savings per year by the third year, and to see the transaction become accretive to GAAP earnings per share by year two. Warner Bros. franchises, shows and movies such as The Big Bang Theory, The Sopranos, Game of Thrones, The Wizard of Oz and the DC Universe will join Netflix titles including Wednesday, Money Heist and Bridgerton on one service.
"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, we'll be able to do that even better," said Ted Sarandos, co-CEO of Netflix. David Zaslav, president and CEO of Warner Bros. Discovery, said that by coming together with Netflix, "we will ensure people everywhere will continue to enjoy the world's most resonant stories for generations to come."
Source: Netflix and Warner Bros. Discovery
Published by GSM · USA (original Chinese edition)
Photo: 图：位于加利福尼亚州Burbank的华纳兄弟制片厂外景与水塔（资料照片）。Chris Yarzab摄，CC BY 2.0，经Wikimedia Commons。 / Photo: The Warner Bros. Studios lot and water tower in Burbank, California (file photo). By Chris Yarzab, CC BY 2.0, via Wikimedia Commons.
