Netflix, Inc. and Warner Bros. Discovery, Inc. jointly announced today that they have signed a definitive agreement under which Netflix will acquire Warner Bros. Pictures, Warner Bros. Television, the HBO and HBO Max brands, and the associated film and television libraries in a cash-and-stock transaction with an enterprise value of approximately $82.7 billion. So when will it close and when will HBO Max & Netflix merger?
The deal values Warner Bros. Discovery shares at $27.75 apiece, delivering a total equity value of $72 billion. Warner Bros. Discovery shareholders will receive $23.25 in cash plus a fixed $4.50 worth of Netflix common stock for each share they own, with the stock portion protected by a collar mechanism linked to Netflix’s share price in the final days before closing.
The transaction does not include Warner Bros. Discovery’s linear networks or global channels business. Before the acquisition can close, Warner Bros. Discovery must complete its previously announced plan to spin off its Global Networks division – which includes CNN, TNT Sports, Discovery Channel, and international assets – into a new independent public company to be called Discovery Global. That separation is now scheduled for the third quarter of 2026. As a result, the Netflix acquisition is not expected to close until the second half of 2026 at the earliest, with early 2027 remaining a realistic possibility depending on the pace of regulatory reviews and shareholder approvals.
The companies emphasized that the long timeline reflects both the complexity of the Discovery Global spin-off and the anticipated intensity of antitrust scrutiny in the United States and several international markets. Regulators are likely to examine the combination of Netflix’s dominant streaming position with HBO’s premium programming and one of Hollywood’s largest film libraries.
Upon closing, Netflix will instantly gain ownership of some of the most valuable intellectual property in entertainment, including the DC Universe, Harry Potter, The Lord of the Rings, Game of Thrones, The Sopranos, Friends, The Matrix, and classics such as Casablanca, The Wizard of Oz, and Citizen Kane. The company has committed to preserving Warner Bros.’ theatrical film business and its historic Burbank lot while integrating HBO’s prestige television operations.
The merger is projected to deliver $2 billion to $3 billion in annual cost synergies by the third year after completion and to become accretive to Netflix’s GAAP earnings per share within two years. Netflix also plans significant new investment in U.S. production facilities and original content.
Wall Street responded immediately in pre-market trading, with Warner Bros. Discovery shares surging toward the $27.75 deal price and Netflix shares trading modestly lower as investors assessed the mix of cash, stock, and new debt required to fund the transaction. Financing commitments have been secured from Wells Fargo, BNP Paribas, and HSBC.
If completed, the acquisition will rank as the largest media merger since Disney’s $71 billion purchase of 21st Century Fox in 2019 and will mark Netflix’s transformation from a DVD rental service founded in 1997 into the owner of one of Hollywood’s six legacy major studios.
Further announcements regarding integration planning, the future of the HBO and HBO Max brands, leadership structure, and a newly created Chief Integration Officer position are expected in the coming months as both companies prepare regulatory filings and advance the Discovery Global separation process.
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