(MENAFN) Netflix and Warner Bros. Discovery (WBD) revealed on Friday that they have reached an agreement under which Netflix will purchase Warner Bros., encompassing its film and television studios, HBO Max, and HBO.

The deal, structured as a combination of cash and stock, values each WBD share at $27.75, translating to a total transaction of $72 billion and an enterprise value of roughly $82.7 billion, according to a statement from Netflix.

This acquisition would give Netflix complete control over a century-old Hollywood studio and its legendary franchises, including "Harry Potter," "Batman," "Game of Thrones," "Friends," and "The Sopranos."

Additionally, it secures HBO’s premium brand, immediately combining Netflix’s 300 million global subscribers with Max’s 128 million.

Netflix has pledged to regulators, cinema chains, and entertainment unions that it will uphold all existing Warner Bros. theatrical release agreements—a critical point of concern in Hollywood.

The companies expect the deal to close in the third quarter of 2026, following the separation of the TV networks, with completion projected within 12 to 18 months.

Under the terms of the agreement, each WBD shareholder will receive $23.25 in cash and $4.50 in Netflix common stock for every share of WBD stock they hold once the merger is finalized.

The boards of directors of both Netflix and Warner Bros. Discovery have unanimously approved the deal, which still requires regulatory approval and the consent of WBD shareholders.

Regarding branding, HBO is likely to retain its identity and creative autonomy, much like Marvel and Pixar under Disney.

Future projects may feature dual branding, such as "A Warner Bros. Picture, A Netflix Original," with the Max app expected to merge into Netflix within 18-24 months, sources told The Hollywood Reporter and The New York Times.

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