Netflix To Acquire Warner Bros. Discovery, Including HBO and HBO Max, For A Total Enterprise Value Of $82.7B – AfroTech
Netflix’s latest deal marks a significant update in the entertainment landscape.
In a press release, Netflix confirmed it has agreed to purchase Warner Bros. Discovery Inc. in a deal with a total enterprise value of approximately $82.7 billion (equity value of $72.0 billion). The agreement, approved unanimously by the boards of directors of both companies, states that the acquisition includes Warner Bros.’ film and television studios, HBO Max, and HBO, but not Discovery.
The deal is projected to be finalized in the third quarter of 2026 as Warner Bros. Discovery Inc. separates Discovery Global, its Global Networks division, into a new publicly traded company.
Greg Peters, co-CEO of Netflix, noted in the press release that the acquisition will position the company to reach a broader audience while scaling its business model in the decades ahead, ensuring customers have an optimal streaming service and improving the entertainment landscape, which will also benefit shareholders.
Netflix says it expects to build on Warner Bros.’s strengths, such as theatrical releases for Warner Bros. films, according to The Hollywood Reporter, though the streaming giant itself is known for not distributing movies in theaters.
“Our mission has always been to entertain the world,” Ted Sarandos, co-CEO of Netflix, explained in the press release. “By combining Warner Bros.’ incredible library of shows and movies — from timeless classics like ‘Casablanca’ and ‘Citizen Kane’ to modern favorites 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.”
President and CEO of Warner Bros. Discovery, David Zaslav, commented:
“Today’s announcement combines two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most. For more than a century, Warner Bros. has thrilled audiences, captured the world’s attention, and shaped our culture. By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come.”
