Netflix (NASDAQ: NFLX) agreed to acquire Warner Bros assets from Warner Bros. Discovery (NASDAQ: WBD) for a total enterprise value of about $82.7 billion and equity value of $72.0 billion, with closing expected after the latter completes the previously announced Discovery Global separation now targeted for Q3 2026.
The consideration is a cash and stock package valued at $27.75 per WBD share, comprised of $23.25 in cash plus $4.501 in Netflix common stock per share at closing.
Netflix said it will acquire Warner Bros “including its film and television studios, HBO Max and HBO,” and it expects to maintain Warner Bros’ current operations, including the continued use of theatrical releases for films, rather than converting everything into streaming-only distribution.
On synergy math, Netflix guided to at least $2 billion to $3 billion of annual cost savings by the third year and said the transaction is expected to be accretive to earnings per share by year two.
The stock component is governed by a collar tied to a 15-day volume weighted average price of Netflix measured three trading days prior to closing, with the $4.50 per share stock value maintained if Netflix VWAP is between $97.91 and $119.67.
If the VWAP falls below $97.91, Warner Bros. Discovery shareholders receive 0.0460 Netflix shares per share; if the VWAP rises above $119.67, shareholders receive 0.0376 Netflix shares per share.
Structurally, the agreement is explicitly sequenced behind Warner Bros. Discovery’s separation of its Global Networks division into Discovery Global, a new publicly traded company expected in Q3 2026, holding assets including CNN, TNT Sports (US), Discovery, certain free-to-air channels across Europe, and digital products such as Discovery+ and Bleacher Report.
Both boards approved the deal unanimously, and closing requires completion of the Discovery Global separation, regulatory approvals, Warner Bros. Discovery shareholder approval, and customary closing conditions, with the companies guiding to a 12–18 month timeline.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
