Netflix to Buy Warner Bros. for $72 Billion Equity Value
Netflix and Warner Brothers Discovery, Inc. (WBD) announced on December 5 that Netflix will acquire WBD for the equity value of $72 billion, which is approximately $82.7 billion total enterprise value.
Written by Jackie Leavitt (Editor at Large)
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The transaction was approved unanimously by both Netflix and Warner Brothers Discovery, Inc. (WBD) board of directors, though the deal is subject to regulatory approval, approval of WBD shareholders and other conditions.
The transaction is expected to close in 12-18 months, after WBD completes the split of its studio and streaming businesses into separate companies — Warner Bros and Discovery Global, respectively; that division is expected to finish in Q3 2026.
If the deal is approved, Netflix will own its third biggest rival in the U.S. by subscribers (after Amazon Prime Video and Disney+), with Netflix having 301.6 million subscribers as of January and WBD with 128 million subscribers.
In a statement from Netflix, Greg Peters, co-CEO of Netflix, said, “This acquisition will improve our offering and accelerate our business for decades to come.”
“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.”
— Greg Peters, Netflix co-CEO
According to Netflix’s statement, the company expects the purchase to bring in more subscribers, engagement and “at least $2-3 billion of cost savings per year by the third year.”
The deal will also move WBD’s portfolio — including DC Comics, Game of Thrones, Harry Potter, Big Bang Theory and more — under Netflix’s umbrella. However, Variety reported that Netflix is expected to keep HBO Max as a separate service, at least for now.