Netflix has executed a strategic masterstroke with its announced $82.7 billion purchase of Warner Bros. Discovery. This definitive agreement provides Netflix with one of entertainment’s most valuable content libraries while adding significant production capabilities, creating a vertically integrated company with unprecedented advantages in the competitive streaming landscape.
The deal structure establishes $27.75 per share as the acquisition price for Warner Bros. Discovery stock, translating to total equity value of approximately $72.0 billion. The enterprise value of $82.7 billion includes all of Warner Bros. Discovery’s valuable assets, from blockbuster film franchises to prestige television programming to production infrastructure. The unanimous approval by both boards demonstrates strong confidence in the merger’s strategic logic.
Netflix co-CEO Ted Sarandos emphasized the content advantages that motivated this acquisition. He described how Warner Bros.’ extensive catalog—featuring classics like Casablanca alongside modern hits like Harry Potter—will enhance Netflix’s value proposition to subscribers. This merger addresses Netflix’s ongoing need for premium content while providing economies of scale in production and distribution.
Warner Bros. Discovery CEO David Zaslav expressed confidence that the merger will maximize Warner Bros.’ content value and cultural impact. He noted that Netflix’s global platform and sophisticated technology will introduce Warner Bros. properties to new audiences while maintaining creative standards. The transaction reflects both companies’ commitment to adapting their business models for success in an industry increasingly defined by streaming distribution.