Netflix has executed a strategic masterstroke by announcing its acquisition of Warner Bros. Discovery for $82.7 billion, a transaction that fundamentally redraws the competitive map of the entertainment industry. This definitive agreement merges the world’s most successful streaming platform with a studio whose heritage spans the entire history of Hollywood, creating unprecedented opportunities for content distribution and creation.
The financial framework of the deal establishes a price of $27.75 per share for Warner Bros. Discovery, equating to a total equity value of approximately $72.0 billion. With an enterprise value of $82.7 billion, the transaction ranks among the largest in media history and reflects Netflix’s aggressive strategy to secure premium content amid intensifying competition. The unanimous board approvals signal that leadership on both sides views this merger as a transformative opportunity.
Ted Sarandos, serving as Netflix’s co-CEO, articulated a clear vision for the combined company. By uniting Warner Bros.’ treasure trove of classic films and modern franchises with Netflix’s original programming successes, the merged entity will offer an entertainment experience unmatched in breadth and quality. This acquisition represents Netflix’s evolution from content aggregator to one of the world’s largest content owners, fundamentally changing its business model and competitive position.
David Zaslav of Warner Bros. Discovery emphasized the cultural significance of this merger, noting that it brings together more than a century of Warner Bros.’ storytelling excellence with Netflix’s innovative distribution model. He expressed confidence that this combination will ensure Warner Bros.’ content remains culturally relevant and accessible to global audiences. The transaction positions both companies to capitalize on the continued shift toward streaming as the dominant mode of entertainment consumption.