Netflix and chill, Netflix to acquire Warner Bros. Discovery in $82.7 billion

Netflix has agreed to acquire Warner Bros. Discovery in a cash and stock transaction valued at $27.75 per share, with a total enterprise value of approximately $82.7 billion.

The deal, announced on Friday, follows a weeks-long bidding war where Netflix outbid Paramount Skydance’s nearly $24 offer with its nearly $28-a-share proposal. Trading in Warner Bros. Discovery stock was halted ahead of the announcement.

Under the agreement, Warner Bros. Discovery shareholders will receive $23.25 in cash and $4.50 in Netflix common stock for each share they own. The transaction is expected to close in 12-18 months, after the previously announced separation of WBD’s Global Networks division into a new publicly traded company called Discovery Global.

The acquisition will bring together Netflix’s streaming platform with Warner Bros.’ iconic franchises including “Game of Thrones,” “DC Comics,” and “Harry Potter,” further tilting the power balance in Hollywood toward the streaming giant.

“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 with our culture-defining titles, we’ll be able to do that even better.”

David Zaslav, President and CEO of Warner Bros. Discovery, stated: “Today’s announcement combines two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most.”