Warner Bros. Discovery announced it has agreed to sell its iconic studio and streaming assets, including HBO Max, to Netflix, in a blockbuster deal that still requires federal regulatory approval. If finalized, the merger would unite the 102-year-old Hollywood powerhouse with the world’s largest streaming platform, creating a dominant new force in global entertainment.
The deal follows Warner Bros. Discovery’s recent plan to split the company into two divisions — one for entertainment and streaming, and another centered on news and sports.
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After unveiling that strategy, WBD began receiving unsolicited bids for its entertainment assets. These bids prompted CEO David Zaslav to pause the split and evaluate alternative options.
The review ultimately led to Netflix’s offer, setting the stage for one of the most consequential media shake-ups in years.
Details of the sale
Now, Netflix says it will go through with the split and purchase the entertainment and streaming portion.
Netflix says WBD will finalize the split in Q3 of 2026. The sale is valued at $27.75 per share, marking a total equity value of $72 billion.
With the acquisition, Netflix becomes a powerhouse streaming and entertainment company. It will be comprised of iconic movies and shows like Netflix’s “Stranger Things” and Warner Bros.’ “Harry Potter.”
“This acquisition brings together two pioneering entertainment businesses, combining Netflix’s innovation, global reach and best-in-class streaming service with Warner Bros.’ century-long legacy of world-class storytelling,” Netflix wrote in a news release.
Netflix’s co-CEO’s also shared the following statements:
“Our mission has always been to entertain the world,” said Ted Sarandos, co-CEO of Netflix. “By combining Warner Bros.’ incredible library of shows and movies—from timeless classics like Casablanca and Citizen Kane to modern favorites like Harry Potter and Friends—with our culture-defining titles like Stranger Things, KPop Demon Hunters and Squid Game, we’ll be able to do that even better. Together, we can give audiences more of what they love and help define the next century of storytelling.”
“This acquisition will improve our offering and accelerate our business for decades to come,” continued Greg Peters, co-CEO of Netflix. “Warner Bros. has helped define entertainment for more than a century and continues to do so with phenomenal creative executives and production capabilities. With our global reach and proven business model, we can introduce a broader audience to the worlds they create—giving our members more options, attracting more fans to our best-in-class streaming service, strengthening the entire entertainment industry and creating more value for shareholders.”
