Netflix Shakes Up Hollywood with $82.7 Billion Warner Bros. Discovery Buyout

The entertainment industry is reeling from Netflix’s announcement of a definitive agreement to acquire Warner Bros. Discovery for $82.7 billion. This blockbuster deal combines the disruptive streaming service that changed how audiences consume content with the traditional studio that helped build Hollywood, creating a hybrid entity positioned to lead entertainment into the future.
The transaction values Warner Bros. Discovery at $27.75 per share, establishing total equity value at approximately $72.0 billion. With an enterprise value of $82.7 billion, the deal encompasses Warner Bros. Discovery’s entire portfolio of assets, including production facilities, content libraries, distribution networks, and brands like HBO. Both companies’ boards have unanimously approved the transaction, reflecting confidence in its strategic logic.
Ted Sarandos, Netflix’s co-CEO, described the acquisition as a natural extension of Netflix’s mission to deliver great entertainment worldwide. He emphasized that integrating Warner Bros.’ extensive catalog of classics and franchises with Netflix’s successful original programming creates opportunities to serve subscriber interests more effectively. The merger also provides Netflix with valuable intellectual property that can be leveraged across multiple content formats.
David Zaslav of Warner Bros. Discovery praised the merger as bringing together complementary strengths. He noted that while Warner Bros. excels at content creation and storytelling, Netflix has mastered the technology and data science of content recommendation and delivery. The combination promises to preserve Warner Bros.’ legacy while adapting its business model to the realities of streaming-first consumption patterns.