Netflix buys Warner Bros for $82.7 billion

Netflix has announced its intention to acquire Warner Bros Discovery, valuing the company’s shares at $27.75 per share. The total cost of the transaction is about $82.7 billion. The process is scheduled to be completed after Warner Bros. spins off Discovery Global into a new public company. According to the preliminary schedule, this should happen in the third quarter of 2026.

In addition to Warner Bros. itself, Netflix will gain control over television and film studios, as well as the HBO and HBO Max services. This will significantly expand the library of the streaming platform. It should include such popular projects as “The Big Bang Theory”, “The Sopranos”, “Game of Thrones”, “The Wizard of Oz”, DC comic book adaptations and other famous works.

Netflix co-chairman Ted Sarandos mentioned in a comment the company’s desire to expand opportunities for viewers and emphasized that the extensive collection of classic and modern films and series Warner Bros. will complement the platform’s own hits, including “Amazing Miracles”, KPop Demon Hunters and “Squid Game”. According to him, the combination of two large catalogs should strengthen Netflix’s influence in the entertainment industry.

The company notes that this merger will increase the value of the service for viewers and expand production capabilities in the United States. For content creators, new opportunities to work with large franchises are promised. Investors are forecasting annual savings of two to three billion dollars and an increase in earnings per share starting in the second year after the transaction is completed.

Earlier it was reported that if regulators do not approve the deal, Netflix will have to pay Warner Bros. five billion dollars. The streaming service was not the only contender for the purchase of assets: Paramount Skydance and Comcast were also named among the potential buyers.