05.12.2025 15:46
Netflix has agreed to acquire Warner Bros for a company value of $82.7 billion. The transaction is expected to be completed within 12 to 18 months.
Netflix announced that it has reached an agreement to acquire the U.S.-based media giant Warner Bros. for a total company value of $82.7 billion. According to the announcement, the equity value of the transaction was set at $72 billion.
Netflix made the highest bid to acquire Warner Bros. Discovery studios and streaming units. The company stated that the agreement was unanimously approved by the boards of directors of both Netflix and Warner Bros. Discovery (WBD). It was noted that the acquisition would take place after the completion of WBD's process of spinning off its Discovery Global unit into a new company, which is expected to be completed in the third quarter.
CASH AND NETFLIX STOCK FOR SHAREHOLDERS
According to the agreement, each WBD shareholder will receive $23.25 in cash and Netflix stock worth $4.50 per share. Thus, the total transaction value corresponds to $27.75 per share.
Netflix announced that it will maintain Warner Bros.' existing operations after the acquisition process is completed. The company also stated that it aims to achieve annual cost savings of at least $2-3 billion starting from the third year of integration.
EXPECTATION OF POSITIVE IMPACT ON NETFLIX'S PROFITABILITY
According to the statements, the acquisition is expected to positively contribute to Netflix's GAAP earnings per share starting from the second year. The completion process of the transaction is estimated to take between 12 to 18 months.
With this massive merger, a significant increase in Netflix's global content production and distribution capacity is expected, while industry experts emphasize that the agreement is likely to change the balance in the digital broadcasting sector.