Ted Sarandos, co-CEO, Netflix, attends the 31st annual SAG Awards in February. Netflix just bought Warner Bros. Discovery for $82.7 billion. File Photo by Chris Chew/UPI | License Photo
Netflix agreed to buy Warner Bros. Discovery in a deal valued at $82.7 billion after securing financing from a group of banks.
Netflix said the purchase would offer users more choices and allow it to “optimize its plans,” expand studio operations and create better value for shareholders. The deal includes Warner Bros. film studios, HBO and HBO Max.
The deal has a total enterprise value of about $82.7 billion and an equity value of $72 billion and will close in the next 12 to 18 months. The purchase comes after a bidding war against Paramount Skydance and Comcast. It has a breakup fee of $5.8 billion, which means that if the purchase doesn’t go through, Netflix has to pay that fee to WBD.
Specifics are still unclear, but Netflix said it will maintain the current operations of WBD, “including theatrical releases for films.”
Netflix said it will keep HBO and HBO Max as separate entities, but it will add some HBO content to Netflix.
“By adding the deep film and TV libraries and HBO and HBO Max programming, Netflix members will have even more high-quality titles from which to choose,” the company said. “This also allows Netflix to optimize its plans for consumers, enhancing viewing options and expanding access to content.”
WBD shareholders will get $23.25 in cash and $4.50 in shares of Netflix stock for each WBD stock. Its linear networks business, which includes CNN, TNT, HGTV and Discovery+, will be spun out into a new publicly traded company in the third quarter of 2026.
The announcement didn’t specify what will happen to Warner Bros. Discovery CEO David Zaslav. He was going to become CEO of the stand-alone Warner Bros. before the sale.
“Today’s announcement combines two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most,” Zaslav said in a statement. “For more than a century, Warner Bros. has thrilled audiences, captured the world’s attention, and shaped our culture. By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come.”
“Our mission has always been to entertain the world,” said Ted Sarandos, co-CEO of Netflix, in a statement. “By combining Warner Bros.’ incredible library of shows and movies — from timeless classics like Casablanca and Citizen Kane to modern favorites like Harry Potter and Friends — with our culture-defining titles like Stranger Things, KPop Demon Hunters and Squid Game, we’ll be able to do that even better. Together, we can give audiences more of what they love and help define the next century of storytelling.”
“This acquisition will improve our offering and accelerate our business for decades to come,” continued Greg Peters, co-CEO of Netflix. “Warner Bros. has helped define entertainment for more than a century and continues to do so with phenomenal creative executives and production capabilities. With our global reach and proven business model, we can introduce a broader audience to the worlds they create — giving our members more options, attracting more fans to our best-in-class streaming service, strengthening the entire entertainment industry and creating more value for shareholders.”
Martha Stewart, Molly Ringwald attend ‘New Yorker at 100’ screening
Martha Stewart arrives on the red carpet for a screening of Netflix’s “The New Yorker at 100” documentary at The Paris Theatre in New York City on December 4, 2025. Photo by John Angelillo/UPI | License Photo
