Netflix and Warner Bros. Discovery announced today that they have entered into a definitive agreement for Netflix to acquire Warner Bros., including the film and television studios and the HBO and HBO Max brands, in a deal valued at approximately $82.7 billion.
The cash-and-stock transaction places WBD at twenty-seven dollars and seventy-five cents per share and is expected to close after the planned separation of WBD’s Global Networks division, Discovery Global, in the third quarter of 2026.
The acquisition unites Netflix’s global streaming reach and innovation with Warner Bros.’ century-long legacy of filmmaking and storytelling. Iconic Warner Bros. titles, including The Sopranos, Game of Thrones, The Wizard of Oz, Harry Potter, and the DC and Conjuring Universes, will sit alongside Netflix hits such as Wednesday, Bridgerton, Money Heist, and Adolescence.
“Our mission has always been to entertain the world,” said Ted Sarandos, co-CEO of Netflix. “By combining Warner Bros.’ incredible library of shows and movies with our culture-defining titles like Stranger Things and Squid Game, we can do that even better. Together, we can give audiences more of what they love and help define the next century of storytelling.”
Sarandos stressed that the acquisition does not mean Netflix is abandoning theatrical releases. In fact, he insisted that Netflix has “no opposition to movies in theaters,” noting that the company released 30 films theatrically in 2025. Most of those titles had significantly shorter windows than traditional studio releases, which Sarandos described as “not consumer-friendly.”
“When we talk about keeping HBO operating largely as it is, that also includes their output movie deal with Warner Bros., which starts in the movie theater,” Sarandos said during a conference call. “We are going to continue to support that.”
He added that theatrical windows may soon “evolve” to better meet audience habits. “Right now, you should count on everything planned to go to theaters through Warner Bros. continuing to go to theaters. Netflix films will continue on their current path, meaning some will have short runs in cinemas, but our primary goal is to bring first-run movies to our members.”
Netflix has already shown willingness to expand certain theatrical events, debuting Noah Baumbach’s Jay Kelly, Guillermo del Toro’s Frankenstein and Kathryn Bigelow’s A House of Dynamite with limited exclusivity ahead of streaming. Next year, the streamer plans to release Greta Gerwig’s Narnia: The Magician’s Nephew in IMAX venues. Netflix also owns and operates two historic theaters, the Paris in New York and the Egyptian in Los Angeles.
David Zaslav, President and CEO of Warner Bros. Discovery, framed the deal as a moment of continuity and reinvention. “Warner Bros. has shaped culture for more than a century. By coming together with Netflix, we will ensure that audiences everywhere continue to enjoy the world’s most resonant stories for generations to come.”
The news has not been warmly received by everyone. Cinema United, the exhibition industry’s largest trade group, criticized the deal within hours of the announcement. “The proposed acquisition of Warner Bros. by Netflix poses an unprecedented threat to the global exhibition business,” said Cinema United President and CEO Michael O’Leary. “Regulators must look closely at this transaction and understand the negative impact it will have on consumers, exhibition and the entertainment industry.”
Sarandos has drawn skepticism before for suggesting that movie theaters are “outdated,” but Netflix emphasized in its acquisition statement that it “expects to maintain Warner Bros.’ current operations and build on its strengths, including theatrical releases for films.”
Under the terms of the agreement, WBD shareholders will receive twenty-three dollars and twenty-five cents in cash and four dollars and fifty cents in Netflix stock for each share held at closing. The stock portion is subject to a collar tied to the volume-weighted average price of Netflix shares prior to the deal’s close. Both boards approved the acquisition unanimously.
The transaction is expected to close within twelve to eighteen months following regulatory review, shareholder approval and the completion of WBD’s corporate separation.
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