What We Know About Netflix’s Acquisition Of Warner Bros

On December 5, Netflix announced its acquisition of Warner Bros. Under this agreement, Netflix will acquire Warner Bros’ film and television studios, along with its cable network HBO and streaming platform HBO Max.

Here’s everything we know about this deal, so far.

• Netflix outbid Paramount Skydance, and Comcast to acquire Warner Bros.
• The total Enterprise Value of this deal is $82.7 billion (enterprise value), under which Netflix will acquire Warner Bros. film and television studios (which include franchises such as Harry Potter, Game of Thrones, and DC Comics), HBO, and HBO Max.
• Warner Bros. Discovery shareholders will get $27.75 per WBD share ($23.25 in cash + $4.50 in Netflix stock), with the equity value being $72 billion.
• Warner Bros. Discovery’s Global Networks division isn’t a part of this deal. Netflix will own Warner Bros.’ studios and streaming division, whereas WBD’s Global Networks division will spin off into a publicly traded company called Discovery Global, which will own its other cable networks (TNT Sports in the US, CNN, and Discovery Channel).
• The deal hasn’t gone through just yet. They still need WBD shareholder approval and regulatory approval.
• The acquisition is expected to be completed in the next 12-18 months, around Q3 2026.
• If the agreement falls through, Netflix will pay $5.8 billion reverse breakup fee to Warner Bros. Discovery.
• If WBD backs out of the deal, it will pay Netflix $2.8 billion in a breakup fee.
• Netflix expects to save $2-3 billion annually with this deal by year three.

AEW president Tony Khan also commented on this deal recently. Fans can read his comments here.