Netflix to Acquire Warner Bros. Discovery’s Studios and HBO in $82.7 Billion Deal

Overview

• Netflix and WBD announced a cash-and-stock agreement valuing WBD at about $27.75 per share, or roughly $72 billion in equity and $82.7 billion including debt.
• Boards of both companies approved the transaction, which still requires WBD shareholder votes and regulatory clearance in the U.S. and abroad.
• Completion is conditioned on WBD carving out its Global Networks unit, including cable brands such as CNN, TBS and TNT, into a separate company targeted for completion around the third quarter of 2026.
• Reporting indicates a $5 billion breakup fee to WBD if regulators block the merger, reflecting the anticipated intensity of antitrust scrutiny.
• Paramount/Skydance and Comcast were outbid, and Paramount has formally challenged the sale process as favoring Netflix while the deal would hand Netflix HBO/HBO Max and franchises such as Harry Potter, DC and Game of Thrones.