Netflix to Acquire Warner Bros. in $82.7B Deal After WBD Split

Netflix confirmed Friday that it has signed an agreement to acquire Warner Bros. for a total enterprise value of $82.7 billion, including debt. The move would combine Netflix’s streaming business with one of the most established studio operations in film and television.

Under the terms released by the companies, Netflix will purchase Warner Bros. for $27.75 per share, giving the equity portion of the transaction a value of $72 billion.

The closing timeline depends on Warner Bros. Discovery’s plan to separate into two publicly traded companies — one focused on cable networks and the other on film and television production. That division is now expected to be completed in the third quarter of 2026.

Once the separation takes effect, Netflix would assume ownership of Warner Bros., HBO’s programming arm, and the Max streaming service.

What Netflix gains under the agreement

Netflix will take ownership of Warner Bros.’ studio operations, including:

• Ongoing film production

• Television production units

• The Max streaming platform

• Rights to distribute Warner Bros. and HBO programming

The company confirmed that existing theatrical release commitments for Warner Bros. films will remain in place during the review and transition period.

The acquisition also places management of content scheduling and distribution for Warner Bros. and HBO under Netflix’s control once the deal is completed and approvals are secured.

Warner Bros. Discovery’s corporate separation

Warner Bros. Discovery announced earlier this year that it will divide into two publicly traded companies. One will include CNN, TNT Sports, and other cable networks under the Discovery Global name. The other will house Warner Bros. studio operations, HBO programming, and the Max streaming service.

The company stated that the split is planned for the third quarter of 2026. Netflix’s acquisition of the studio and streaming assets is contingent on that structure being completed.

Regulatory Process

The companies stated that the acquisition will be subject to a government review once Warner Bros. Discovery completes its corporate separation in 2026. Netflix expects that process to determine when the transaction can officially close.

During this period, Warner Bros. and HBO will continue to operate as they do today. No integration steps will take place until approvals are granted.

Key review elements included in the timeline:

• Approval must be granted before Netflix assumes ownership

• The review is factored into the 12–18 month closing window

• Warner Bros. remains under current leadership during evaluation

• Distribution and production plans stay unchanged throughout the review

• Both companies continue operating independently until a decision is made

The companies did not provide a specific completion date, noting that the review outcome will set the final schedule.

Stock Performance After the Announcement

Warner Bros. Discovery’s stock has posted sharp gains in recent months, reflecting growing expectations that the studio business would draw bidders. The confirmation of Netflix’s agreement kept the stock stable on Friday, with investors already pricing in a potential transaction.

Netflix shares moved lower following the news, trading down 2.8% to $100.50 in early U.S. activity. The decline came as the company outlined a closing schedule tied to Warner Bros. Discovery’s planned 2026 separation.

Trading remained orderly for both companies as the market absorbed the deal terms and estimated timeline.

What Still Needs to Happen Before Closing

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