Netflix has struck a deal with Warner Bros Discovery to acquire the Hollywood giant`s studio and streaming business. The multibillion-dollar deal is believed to be valued at USD 72 billion (more than Rs 6 trillion). The acquisition was announced on Friday and is set to bring two of the industry`s biggest players in film and TV under one roof.
Warner Bros titles to come on Netflix
The deal unites Netflix’s global streaming service with Warner Bros` century-old library and major franchises. As a result, titles such as The Big Bang Theory, The Sopranos, Game of Thrones, The Wizard of Oz and the DC Universe will soon become part of Netflix’s catalogue.
Netflix Co-CEO Ted Sarandos stated, “By combining Warner Bros’ incredible library of shows and movies — from timeless classics like Casablanca and Citizen Kane to modern favourites 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.”
Netflix added that it intends to maintain Warner Bros’ current operations, including theatrical releases. Meanwhile, the combined libraries of Warner Bros, HBO and HBO Max would expand consumer choice and churn out more opportunities for talent. The company mentioned it expects at least USD 2-3 billion in annual cost savings by the third year, further anticipating that the deal will be accretive to GAAP earnings per share by year two.
About Netflix and Warner Bros deal
The cash and stock deal is valued at USD 27.75 per Warner share, which gives it a total enterprise value of approximately USD 82.7 billion. The transaction is anticipated to close after Warner separates Discovery Global into a new publicly traded company by the third quarter of 2026.
As per the agreement, WBD shareholders will receive USD 23.25 in cash along with USD 4.501 in Netflix stock per share. The stock portion is subject to a collar based on Netflix’s 15-day volume-weighted average price before closing, with specific exchange ratios applying if the VWAP falls below USD 97.91 or rises above USD 119.67.
