Netflix announces $72 billion deal to buy Warner Bros film and streaming assets

The companies estimated the transaction would close in 12 to 18 months, after the TV networks' separation, which is now expected in the third quarter of 2026

By Natalia Mittelstadt

Published: December 5, 2025 10:00am

Netflix on Friday announced its $72 billion deal to buy Warner Bros. film and streaming assets, after Paramount Skydance and Comcast participated in the bidding process.

The companies said that the transaction is comprised of cash and stock and is valued at $27.75 per WBD share, putting the equity value of the deal at $72 billion, with a total enterprise value of approximately $82.7 billion, CNBC reported.

Netflix will acquire the Warner Bros. film studio and its streaming service, HBO Max. Warner Bros. Discovery will continue with its previously planned spinout of Discovery Global, which includes its portfolio of cable networks, such as TNT and CNN.

“I know some of you’re surprised that we’re making this acquisition, and I certainly understand why. Over the years, we have been known to be builders, not buyers,” Netflix Co-CEO Ted Sarandos said on an investor call Friday morning.

“We already have incredible shows and movies and a great business model, and it’s working for talent, it’s working for consumers and it’s working for shareholders. This is a rare opportunity. It’s going to help us achieve our mission to entertain the world and to bring people together through great stories.”

The companies estimated the transaction would close in 12 to 18 months, after the TV networks' separation, which is now expected in the third quarter of 2026.

Every Warner Bros. Discovery shareholder will receive $23.25 in cash and $4.50 in shares of Netflix common stock for each share of WBD common stock outstanding following the deal's close.

Netflix and Warner Bros. Discovery said each of their boards of directors unanimously approved the deal, which is subject to both regulatory and WBD shareholders' approval.

According to a Securities and Exchange Commission filing, Netflix has agreed to pay a $5.8 billion reverse breakup fee if the deal is not approved, and Warner Bros. Discovery would pay a $2.8 billion breakup fee if it decides to call off the deal to pursue a different merger.