Overview
- The definitive, board‑approved agreement values the equity at about $72 billion, or $27.75 per share, implying an enterprise value near $82.7 billion with roughly $10 billion of debt assumed.
- Netflix would acquire Warner’s film and TV studios plus HBO/HBO Max, while CNN, Discovery networks and TNT Sports are excluded and slated to form a separate company, Discovery Global.
- The companies project completion 12–18 months after the spin-off, which Warner Bros. Discovery has targeted for the third quarter of 2026.
- Regulatory scrutiny looms with a U.S. Department of Justice review and bipartisan concern in Congress, and industry groups including Cinema United, the WGA and the DGA warning of harm to theaters, jobs and competition.
- Netflix says it will maintain Warner Bros.’ operations, continue theatrical releases for studio films and pursue at least $2–3 billion in annual cost savings by year three.