Netflix Moves to Acquire Warner Bros. Discovery After Planned Spin-Off

Netflix is preparing to make its boldest leap yet into the entertainment business: a sweeping takeover of Warner Bros.

Discovery that would fold one of Hollywood’s most storied studios – along with HBO and HBO Max – into the world’s largest streaming platform. The companies revealed the plan on December 5, valuing WBD at $72 billion in equity and $82.7 billion in enterprise value, making the deal one of the most consequential media mergers ever attempted.

The acquisition is structured to take effect after WBD carves out its Global Networks division into a separate public entity known as Discovery Global, a process now targeted for Q3 2026. Once that spin-off is completed, Warner Bros.’ century of film and television history – from Harry Potter and Batman to Game of Thrones and Friends – would fall under Netflix’s umbrella, joining originals such as Stranger Things, Wednesday, and Money Heist.

A New Shape for Streaming and Studio Power

Netflix says it intends to preserve Warner Bros.’ theatrical and studio operations while bringing HBO’s premium slate directly into the Netflix service. The combined catalog would create an entertainment library unmatched in scale, giving subscribers a single destination for some of the most recognizable franchises ever created.

For creators, Netflix argues the merger would widen the storytelling canvas: more intellectual property to build on, larger global distribution, and deeper investment in production capacity in the United States.

The company also projects $2-3 billion in annual cost efficiencies within three years and expects the acquisition to lift GAAP earnings per share by the second year after closing.

What Shareholders Get

WBD investors would receive a mix of cash and Netflix shares:

• $23.25 in cash per WBD share, plus
• $4.501 worth of Netflix stock, subject to a collar that fixes the share count if Netflix trades outside a set range.
• Below $97.91, shareholders get 0.0460 shares.
• Above $119.67, they get 0.0376 shares.
• Inside the band, the value stays at $4.50.

Regulators, WBD shareholders, and the completion of the Discovery Global spin-off all stand between the companies and final approval.