Netflix (NFLX) has reached a deal to buy the film and streaming assets of rival entertainment company Warner Bros. Discovery (WBD) for $72 billion U.S.
The deal is comprised of cash and stock and is valued at $27.75 U.S. per Warner Bros. Discovery share.
Each Warner Bros. Discovery shareholder will receive $23.25 U.S. in cash and $4.50 U.S. in shares of Netflix common stock for each share of WBD stock they own.
That puts the total enterprise value of the acquisition at $82.7 billion U.S., with an equity value of $72 billion U.S.
Several other companies had bid to acquire Warner Bros. Discovery, including Paramount Skydance (PSKY) and Comcast (CMCSA).
Warner Bros. plans to move forward with its spinoff of Discovery Global, which includes its massive portfolio of pay TV networks such as TNT and CNN.
With the acquisition, Netflix gets the Warner Bros. Discovery film studio and streaming service HBO Max.
The blockbuster deal also gives Netflix popular and lucrative entertainment franchises such as “The Wizard of Oz,” “Harry Potter,” and the DC comic book universe that includes characters Superman and Batman.
Netflix also gets all the content of HBO Max, including television shows such as “The Sopranos” and “Game of Thrones.”
The acquisition is expected to close in the third quarter of 2026.
NFLX stock has risen 16% this year to trade at $103.22 U.S. per share. The company recently underwent a 10-for-1 stock split.
Warner Bros. Discovery’s stock has risen 130% this year to $24.54 U.S. after the entertainment giant put itself up for sale. However, the share price is down 14% over the last five years.
Related Stories
