Overview
- Netflix and Warner Bros. Discovery signed a board-approved cash-and-stock agreement valuing the equity at about $72 billion, or $27.75 per share, for an enterprise value near $82.7 billion including debt.
- The acquisition covers Warner’s film and TV studios plus the HBO and HBO Max brands, excluding cable networks that Warner plans to separate into Discovery Global before closing.
- Completion is expected 12 to 18 months after the spin-off, which Warner targets for the third quarter of 2026, pending multijurisdictional approvals and other customary conditions.
- Netflix said it will maintain Warner’s current operations and keep theatrical releases for studio films, while signaling it prefers shorter exclusive theatrical windows.
- Regulatory and industry pushback gathered quickly, with DOJ review expected, lawmakers voicing competition concerns, and Cinema United, the WGA and the DGA warning of risks to theaters, jobs and creative competition; Netflix outbid Paramount Skydance and Comcast, and Paramount’s attorneys questioned the sale process.