Constellation Research founder R ‘Ray’ Wang analyzes Netflix and Tesla on ‘Varney & Co.’
Netflix agreed to sell Warner Bros. to buy Discovery in a $72 billion deal, the streaming service announced Friday.
Under the deal, Netflix will acquire Warner Bros.’s film and television studios and streaming platform. Discovery, HBO Max, take over. Franchises, shows and films such as ‘The Big Bang Theory’, ‘The Sopranos’, ‘Game of Thrones’, ‘The Wizard of Oz’ and the DC Universe will be part of Netflix’s extensive portfolio.
The cash-and-stock deal is valued at $27.75 per Warner Bros. Discovery stock and has an enterprise value, or the total value of a company, including debt, of $82.7 billion. The value of Warner Bros. stock Discovery is $72 billion.
The transaction is expected to close after Warner Bros. Discovery has split its Streaming & Studios and Global Networks divisions into two separate publicly traded companies, which is now expected to be completed in the second half of 2026.
“This acquisition will enhance our offering and accelerate our business for decades to come,” said Netflix co-CEO Greg Peters. “Warner Bros. has helped define entertainment for more than a century and continues to do so with phenomenal creative leadership and production capabilities.”
This move marks an important step in the entertainment industry as it supports Netflix as the most powerful distribution platform. In its last quarter
Netflix added a record ~18.9 million new users in Q4 2024, surpassing the 300 million mark – a sign that it is still growing rapidly despite growing competition.
This is a development story. Check back for updates.
