In a move shaking the bedrock of global entertainment, Netflix said Friday it reached an agreement to acquire Warner Bros. Discovery’s studio and streaming empire in a sweeping cash-and-stock transaction valuing the assets at $82.7 billion, debt included. The deal lands with the force of a Hollywood plot twist—one where legacy icons meet the titan of streaming under a single banner.
Skadden Arps Slate Meagher & Flom LLP steered Netflix through the negotiations, while Wachtell Lipton Rosen & Katz and Debevoise & Plimpton LLP advised WBD.
A Deal That Reorders the Entertainment Universe
Under the agreement, Netflix will absorb Warner Bros.’ film and television studios, HBO and HBO Max, pulling legendary franchises into its expanding orbit. WBD shareholders will receive $23.25 in cash and $4.50 in Netflix stock per share, valuing the company at $27.75 per share, according to the announcement. The equity value alone clocks in at $72 billion.
Closing is expected in 12 to 18 months, contingent on WBD completing its plan to spin off its Global Networks division—home to CNN, TNT Sports, Discovery and numerous international channels.
