Netflix Strikes $72 Billion Deal to Buy Warner Bros. Discovery Studios and HBO

Overview

• Netflix will pay $27.75 per WBD share in cash and stock, valuing the equity at about $72 billion and roughly $82.7 billion including debt.
• The transaction requires U.S. and international antitrust approvals and will close only after WBD separates its Discovery Global networks, targeted for the third quarter of 2026.
• Netflix emailed subscribers saying nothing changes today and that Netflix and HBO Max will continue operating separately while approvals are pending.
• Lawmakers and industry groups signaled opposition or concern, with figures including Darrell Issa and Mike Lee urging close review as unions and cinema exhibitors warn of market and theatrical impacts.
• Netflix outbid Paramount/Skydance and Comcast in a multi-round auction, Paramount has challenged the sale process, and Netflix projects $2–3 billion in annual cost synergies by year three while pledging to maintain Warner Bros. theatrical releases for now.