Netflix is buying media conglomerate Warner Bros Discovery for $27.75 per share in a deal that values the company at $82.7 billion. The deal includes Warner Bros' film business, HBO Max and HBO.
The transaction will take place after the spin-off of the cable channel Discovery Global, and is expected to be completed in the third quarter of 2026. The deal will be paid in part in Netflix shares.
In a deal, Netflix will gain access to television hits such as "The White Lotus" and "The Sopranos" as well as the Harry Potter films and the television series "Friends," which are part of Warner Bros.' film and television operations.
At the same time, two completely different entertainment businesses are growing together. Warner Bros is one of Hollywood's most classic film companies, founded in the 1920s. Netflix was started three decades ago as a company that rented DVD movies, and has now grown into a giant in the streaming market with revenues last year of over $39 billion.
Following the announcement, Netflix shares fell 2 percent in pre-market trading in the US. Warner Bros Discovery shares rose 1 percent when futures trading resumed.
