Netflix and Warner Bros. Discovery have entered into an agreement that will see the streaming giant acquire Warner Bros., including its film and television studios, HBO Max and HBO.

The USD $82.7B dollar cash and stock transaction is valued at $27.75 per WBD share and is expected to close following the previously-announced separation of WBD’s Global Networks division, Discovery Global – which will encompass CNN, TNT Sports in the U.S., Discovery free-to-air channels in Europe, Discovery+ and Bleacher Report – into a new publicly-traded company, anticipated in Q3 2026.

“Our mission has always been to entertain the world,” said Ted Sarandos, co-CEO of Netflix. “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.”

“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,” added 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 said it expects to maintain Warner Bros.’ current operations and build on its strengths, including theatrical releases for films. The streamer said the deal will offer more choice and greater value for consumers

“By adding the deep film and TV libraries and HBO and HBO Max programming, Netflix members will have even more high-quality titles from which to choose,” the company said in its announcement. “This also allows Netflix to optimize its plans for consumers, enhancing viewing options and expanding access to content.”

The streamer said the acquisition will also enhance Netflix’s studio capabilities, allowing it to significantly expand U.S. production capacity and continue to grow investment in original content over the long term.

“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,” it continued.

Under terms of the agreement, each WBD shareholder will receive USD $23.25 in cash and $4.50 in shares of Netflix common stock for each share of WBD common stock outstanding at the closing of the transaction. The transaction has been unanimously approved by the Boards of Directors of both Netflix and WBD. Subject to regulatory and WBD shareholder approval, the transaction is expected to close in 12-18 months.

Canadian licensing agreements

The transaction has the potential to impact Canadian content licensing agreements in the longterm.

Warner Bros. Discovery currently has a multi-year licensing agreement in Canada with Bell Media streaming service Crave for HBO Max, HBO and other WBD content, including the Harry Potter franchise and DC Universe.

Rogers, meanwhile, became the home of Warner Bros. Discovery’s suite of English-language U.S. lifestyle and factual brands at the beginning of the year. Rogers is the exclusive English-language content rights holder, distributor, and advertising representative for the Discovery brands in Canada, including the Discovery ID and Discovery TV channels, in addition to making content from Cooking, OWN, MotorTrend, Animal Planet, and Discovery Science available on demand and via its Citytv+ streaming hub on Amazon Prime Video Channels.