Netflix co-CEO Ted Sarandos Jemal Countess/Getty Images Share on Facebook Share on X Google Preferred Share to Flipboard Show additional share options Share on LinkedIn Share on Pinterest Share on Reddit Share on Tumblr Share on Whats App Send an Email Print the Article Post a Comment It's official: Netflix, run by chairman Reed Hastings and co-CEOs Ted Sarandos and Greg Peters, has agreed to buy Warner Bros. in a deal valued at $82.7 billion. The companies issued a press release early Friday announcing the deal, which will alter the course of the entertainment business. Netflix said that it expects to maintain the current operations of Warner Bros. "including theatrical releases for films," though specifics aside from topline deal numbers remain scarce. Netflix says the deal would give users more choice and let it "optimize its plans," it will also expand its studio operations, while creating better value for talent and shareholders, with $2-$3 billion in annual cost savings. Related Stories Business Tilly Norwood Studio Expanding "Tilly-verse" With New Roles Advertised -- Including Social Media Guru and Comedy Writer Business Hollywood Blockbuster: Netflix Poised to Win Battle for Warner Bros. Netflix also made its pitch to filmmakers and creatives, writing that "by uniting Netflix's member experience and global reach with Warner Bros.' renowned franchises and extensive library, the Company will create greater value for talent-offering more opportunities to work with beloved intellectual property, tell new stories and connect with a wider audience than ever before." WBD shareholders will receive $23.25 in cash and $4.50 in shares of Netflix common stock for each share of WBD common stock, with the linear networks business, including CNN, TNT HGTV and Discovery+ still set to be spun out. That move is now expected in Q3 2026. "Our mission has always been to entertain the world," said Ted Sarandos, co-CEO of Netflix, in a statement. "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." "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," said David Zaslav, President and CEO of Warner Bros. Discovery. "For more than a century, Warner Bros. has thrilled audiences, captured the world's attention, and shaped our culture. By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world's most resonant stories for generations to come." Netflix has been described by Wall Street analysts as the winner of the "streaming wars." And now, it is at the Hollywood gates and ready for its latest conquest, even if it is expected to face heavy regulatory scrutiny. The news came after reports that it was in exclusive talks with Warner Bros. Discovery to acquire its streaming and, ironically, studios business. Not only is it understood to have made the highest offer in terms of financial valuation. A Netflix deal would also allow WBD to go through with the planned separation of its networks business and allow WBD CFO Gunnar Wiedenfels to become CEO of that Global Networks business. Why is Netflix buying Warner Bros. and HBO? "Above all, the flow of new content which drives the majority of Netflix engagement," Wolfe Research analyst Peter Supino said in a recent report. "Content released in the last year makes up only about 5 percent of the titles on Netflix but drives over 20 percent of Netflix viewing, reflecting that Netflix engagement increases/ decreases when content spend goes up/down." Bank of America analyst Jessica Reif Ehrlich, in a recent report, described the auction of WBD this way: "The global media industry stands at the precipice of historic transformation, with WBD positioned at the epicenter." And she argued that Netflix sealing a deal for WBD's studios and streaming operations would allow it to kill three birds with one stone. "The bidding war for WBD's streaming and studio assets reflects the economic reality of the 2025 media environment tha