Netflix Acquires Warner Bros. for $82.7 Billion

Netflix announced a mega-acquisition deal to acquire Warner Bros. Discovery core assets -- Warner Bros. Studio and HBO/HBO Max -- in their entirety. Acquisition amount: approximately $82.7B enterprise value (equity value $72B). Transaction structure: WBD separates its global networks division into a separately listed company "Discovery Global," then Netflix acquires the remaining studio and streaming division. Acquisition completion timing: expected to be after Q3 2026 when Discovery Global separation is completed. What Netflix acquires: Warner Bros. film and TV studios, vast library, DC Universe, plus major IP including Harry Potter, Friends, Game of Thrones, and The Sopranos -- combined with Netflix existing originals (Squid Game, Stranger Things, Money Heist), creating a content platform combining "100 years of Hollywood history + 10 years of streaming originals." Transaction terms: WBD shareholders receive $23.25 cash and $4.50 in Netflix stock per share; Netflix pays with mix of cash and stock; targeting $2-3B annual cost synergies within 2-3 years. Both boards unanimously approved; subject to regulatory authority review and WBD shareholder meeting approval. Strategic significance: this is not simple "streaming business strengthening" but a fundamental reshaping of global entertainment geography -- giving Netflix the combination of deep IP library and contemporary streaming infrastructure that Disney has, creating a genuine two-superpower streaming market. Regulatory risk: the AT&T-Time Warner precedent creates uncertainty; the Netflix-WBD deal is a horizontal combination (both in entertainment content) rather than vertical, which historically faces different antitrust analysis.