Netflix has agreed to acquire Warner Bros. from Warner Bros. Discovery (WBD) in a landmark transaction valued at an enterprise value of $82.7 billion, marking one of the largest entertainment mergers in industry history. The deal is set to close following WBD’s planned separation of its Global Networks division, Discovery Global, into a standalone publicly traded company, expected in Q3 2026.

The cash-and-stock transaction values each WBD share at $27.75, comprising $23.25 in cash and $4.50 in Netflix stock, subject to a price collar. The transaction has been unanimously approved by the boards of both companies and remains subject to regulatory clearance and WBD shareholder approval.

Under the agreement, Netflix will acquire Warner Bros.’ film and television studios, HBO and HBO Max, and the company’s extensive library of major franchises and iconic entertainment properties. These include Game of Thrones, Harry Potter, The Sopranos, The Big Bang Theory, the DC Universe, The Wizard of Oz, Friends and many others. They will sit alongside Netflix’s own global hits such as Stranger Things, Money Heist, Wednesday and Bridgerton, further expanding the streaming giant’s already dominant content offering.

Netflix said it intends to maintain Warner Bros.’ current operations, including its theatrical release strategy. Ted Sarandos, Netflix co-CEO, described the deal as a defining moment for the future of global entertainment, saying that combining Warner Bros.’ legacy catalogue with Netflix’s reach will allow the company to deliver even more to audiences worldwide. Fellow co-CEO Greg Peters said the acquisition will accelerate Netflix’s long-term strategy and enhance its production capabilities for decades to come.

WBD chief executive David Zaslav said the agreement brings together two of the world’s strongest storytelling companies and ensures Warner Bros.’ cultural legacy continues to reach new generations of viewers.

Netflix said the acquisition will offer subscribers more choice and help optimise its plans and content offering across markets. The company expects between $2 billion and $3 billion in annual cost savings by the third year and anticipates that the deal will be accretive to earnings per share by year two. It also highlighted new opportunities for the creative community, arguing that pairing its global platform with Warner Bros.’ intellectual property will allow writers, producers and talent to work with some of the most recognisable franchises in entertainment.

The deal cannot close until WBD completes the spin-off of Discovery Global, which will house networks such as CNN, TNT Sports, Discovery Channel, free-to-air European channels and digital products including Discovery+ and Bleacher Report. This separation is expected to take place before the merger is finalised.

Pending regulatory and shareholder approvals, the transaction is expected to close within 12 to 18 months. Netflix and WBD will submit the required filings to the U.S. Securities and Exchange Commission in the coming months.