Streaming giant Netflix said on Dec. 5 that it will purchase Warner Bros. Discovery’s streaming and entertainment assets, concluding an intensive bidding process.

Netflix has agreed to acquire Warner Bros. Discovery’s film studio and streaming platform HBO Max in a landmark deal. As part of the transaction, Warner Bros. Discovery will move forward with the spinoff of Discovery Global, which houses a vast portfolio of pay-TV networks, including CNN and TNT.

The acquisition is valued at $27.75 per Warner Bros. Discovery share, equating to an equity value of $72 billion and an enterprise value approaching $83 billion. Additionally, shareholders of Warner Bros. Discovery are set to collect $23.25 in cash and $4.50 in Netflix stock for each outstanding share.

Each corporation’s board of directors unanimously approved the deal, the companies said.

The transaction is expected to be completed in the third quarter of 2026.

A Dec. 5 Securities and Exchange Commission filing shows that Netflix has agreed to pay a $5.8 billion reverse breakup fee if the deal collapses. Warner Bros. Discovery, meanwhile, would owe a $2.8 billion breakup fee should it decide to walk away from the agreement.

Ted Sarandos, co-CEO of Netflix, says the acquisition will integrate Warner Bros.' enormous library of classic films such as “Citizen Kane” and “Casablanca” with the streamer’s hits such as “Stranger Things, ”Squid Game,“ and ”KPop Demon Hunters.“ The merger will also include HBO Max content, such as ”Game of Thrones“ and ”The Sopranos.”

“Our mission has always been to entertain the world,” Sarandos said in a statement.

“Together, we can give audiences more of what they love and help define the next century of storytelling.”

In recent weeks, several major companies engaged in a high-stakes bidding war to purchase Warner Bros.

Paramount Skydance, led by David Ellison, attempted to buy the entire Warner Bros. Discovery ecosystem, including the film studio, cable networks, and streaming platform.

Comcast, meanwhile, proposed combining Warner Bros. Discovery with NBCUniversal, potentially establishing a vast entertainment conglomerate.

But the primarily cash offer from Netflix and the streaming titan’s commitment to keeping Warner Bros. films in movie theaters won over.

The Netflix logo is shown on one of their buildings in the Hollywood neighborhood of Los Angeles, on Dec. 2, 2025. Reuters/Mike Blake

“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,” Warner Bros. Discovery President and CEO David Zaslav said in a statement.

“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.”

Watching the Stock

After a 6 percent decline over the past month, Accuvest CIO Eric Clark said the stock offered investors “solid value” following a volatile quarter and “fear they will overspend to buy all/part of Warner Brothers.”

Netflix plans to take on debt to finance the acquisition. Wells Fargo, BNP Paribas, and HSBC are supplying an unsecured bridge loan, the companies said. Such short-term financing is typically replaced with longer-term debt instruments, such as corporate bonds.

“They have great data to support whether this acquisition would be additive to the business vs organic content spend,” Clark said in a note emailed to The Epoch Times.

“Regardless: two-thirds of the consumer base is struggling with inflation—Netflix offers one of the highest value entertainment per dollar spent of any entertainment category. That gives them plenty of pricing power.”

Shares of Netflix fell nearly 3 percent in pre-market trading to around $100. This year, the stock is up more than 16 percent. Warner Bros. Discovery shares ticked up 0.5 percent, adding to its year-to-date gain of 130 percent.