Netflix to acquire Warner Bros. Discovery in $82.7 billion deal, faces political and industry pushback
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Netflix has announced a definitive agreement to acquire Warner Bros. from Warner Bros. Discovery in a cash and stock transaction valued at an enterprise value of $82.7 billion and an equity value of $72 billion.
The deal, detailed in a company statement, will include Warner Bros.’ film and television studios, HBO, HBO Max, and the DC Entertainment portfolio.
The acquisition is expected to close after WBD completes the separation of its Global Networks division, Discovery Global, which is scheduled for the third quarter of 2026.
Under the agreement, each WBD shareholder will receive $23.25 in cash and $4.50 in Netflix stock for every share held.
The Boards of Directors of both companies have approved the transaction.
The deal is still subject to regulatory clearances and shareholder approval.
Netflix said the combination will create one of the most extensive entertainment libraries in the world.
The company highlighted the benefits of integrating franchise titles such as The Big Bang Theory, Game of Thrones, Harry Potter, and the DC Universe with Netflix originals, including Stranger Things, Bridgerton, and Squid Game.
Netflix co CEO Ted Sarandos said the union will help the company define the next century of storytelling. Co CEO Greg Peters said the merger will accelerate Netflix’s business for decades and drive value for shareholders.
However, the proposed acquisition has triggered strong criticism from political leaders and Hollywood unions.
Several US lawmakers warned that the merger would further concentrate power in the entertainment industry. They argued that a Netflix Warner Bros. entity could reduce competition, raise subscription prices, and shrink creative freedom.
The Directors Guild of America and the Writers Guild of America also raised concerns. Both groups said the deal threatens jobs, wages, and the diversity of content available to audiences. The Writers Guild called for the merger to be blocked, arguing that antitrust laws were designed to prevent such consolidation.
Despite the mounting opposition, Netflix leadership has expressed confidence that the transaction will clear regulatory scrutiny. Sarandos said the deal is pro-consumer and pro-innovation and insisted that Warner Bros. theatrical releases will continue as planned.
If approved, the acquisition would reshape the global entertainment landscape and place Netflix at the center of the industry’s most influential franchises.