Netflix Acquires Warner Bros In $82.7 Billion Megadeal

• Each WBD shareholder will get $23.25 in cash plus $4.50 worth of Netflix stock for every WBD share they own.
• As a result, the deal is valued at $27.75 per WBD share, with a total enterprise value of approximately $82.7 billion and a total equity value of $72 billion. 
• The update follows several weeks of competitive bidding for Warner Bros. Discovery’s assets, involving Netflix, Paramount Skydance, and Comcast.

Netflix, Inc. (NFLX) and Warner Bros. Discovery, Inc. (WBD) announced on Friday a landmark deal under which Netflix will acquire Warner Bros., including its film and television studios, HBO, and HBO Max, in a cash-and-stock transaction. 

Each WBD shareholder will receive $23.25 in cash plus $4.50 in Netflix stock for each WBD share they own when the deal closes. As a result, the deal is valued at $27.75 per WBD share, with a total enterprise value of approximately $82.7 billion and a total equity value of $72 billion. 

The acquisition will merge Netflix’s global streaming reach with Warner Bros.’ legacy in film and television. Warner Bros’ stock inched 0.1% lower in Friday’s premarket while Netflix shares fell over 2%. On Stocktwits, retail sentiment around Warner Bros. stock jumped to ‘bullish’ from ‘bearish’ territory the previous day amid ‘high’ message volume levels.

Entertainment Boost

The acquisition is expected to expand Netflix’s U.S. production capacity, increase investment in original content, and create new jobs. Netflix projects $2 to $3 billion in annual cost savings by year three after the deal and expects the deal to positively impact earnings per share by the second year.

The transaction has received unanimous approval from the boards of both companies. The deal is set to finalize once WBD’s Global Networks division, Discovery Global, spins off into a new publicly traded company, now anticipated to finish in Q3 2026.

Bidding War For WBD 

Netflix’s win follows several weeks of competitive bidding for Warner Bros. Discovery’s assets, involving Netflix, Paramount Skydance, and Comcast. On Thursday, Paramount called out WBD, saying its sale process may be rigged in favour of a single bidder and that it lacks transparency.

According to a Reuters report, Netflix took the lead, surpassing Paramount Skydance’s roughly $24 per share bid for all of Warner Bros. Discovery. WBD stock has gained over 132% in 2025 and over 129% in the last 12 months.

Also See: ITT Stock Dips Premarket After Striking $4.7 Billion Deal For SPX FLOW

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