netflix to Acquire Majority of Warner Bros. Discovery in $72 Billion Deal
LOS ANGELES – Netflix and Warner Bros.Discovery (WBD) have reached a definitive agreement for Netflix to acquire a importent portion of WBD, valuing the media giant at $72 billion including debt. The deal, announced today, reshapes the streaming landscape and marks a dramatic shift for both companies as they navigate an increasingly competitive market.
The acquisition will see Netflix gain control of WBD’s film and television assets, excluding the Discovery Global network division which will be spun off as an self-reliant entity. This move consolidates vast content libraries – including franchises like Harry Potter, DC Comics, and Game of Thrones – under the Netflix umbrella, perhaps bolstering subscriber growth and reducing content costs. The deal comes as both companies face pressure to demonstrate profitability in the evolving streaming era, and follows previous discussions about a potential partnership that reportedly stalled over concerns about impacting consumers and Hollywood.
Under the terms of the agreement, WBD shareholders will receive $23.25 in cash and approximately $4.50 in Netflix stock for each share held, representing a 121.3% premium over WBD’s closing stock price on September 10th. Netflix anticipates realizing at least $2 billion to $3 billion in annual cost savings by the third year following the deal’s completion, expected in the third quarter of 2026.
The agreement includes considerable break-up fees: Netflix would pay WBD $5.8 billion if the deal collapses, while WBD would pay Netflix $2.8 billion. The transaction is contingent upon the successful separation of Discovery global and regulatory approvals.
