Entertainment major Netflix has announced that the company has entered into a definitive agreement with Warner Bros Discovery (WBD) including its film and television studios, HBO Max and HBO.

With a total enterprise value of $82.7 billion (equity value of $72.0 billion), the cash and stock transaction is valued at $27.75/WBD share. The share price of Warner Bros Discovery rose 5.95% from $24.54/share to a 52-week-high of $26/share on the Nasdaq index on Friday after the deal was announced.

The transaction is expected to close after the previously announced separation of WBD's Global Networks division, Discovery Global, into a new publicly-traded company, which is now expected to be completed in Q3 2026, the statement said.

"Our mission has always been to entertain the world," said Ted Sarandos, co-CEO of Netflix. He said that from the timeless classics like Casablanca and Citizen Kane, to those modern favourites like Harry Potter and Friends of Warner Bros, and Netflix’s 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," he added.

David Zaslav, president and CEO of Warner Bros Discovery said that the 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".

 "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," he added.

In June 2025, WBD announced plans to separate its Streaming & Studios and Global Networks divisions into two separate publicly traded companies. This separation is now expected to be completed in Q3 2026, prior to the closing of this transaction which is expected to close in 12-18 months. Under the terms of the agreement, each WBD shareholder will receive $23.25 in cash and $4.501 in shares of Netflix common stock for each share of WBD common stock outstanding at the closing of the transaction.