In a move set to redefine the global media landscape, streaming titan Netflix has struck a monumental agreement to acquire entertainment giant Warner Bros Discovery.
The Details of the Blockbuster Deal
The deal, announced on Friday 5th December 2025, values Warner Bros Discovery at $27.75 per share. This translates to an equity value of approximately $72 billion, with the total enterprise value, including debt, reaching a staggering $82.7 billion.
Under the agreed terms, shareholders of Warner Bros Discovery will receive $23.25 in cash and roughly $4.50 in Netflix stock for each share they own. This offer represents a substantial premium of 121.3% over Warner Bros Discovery's share price before initial rumours of a potential buyout surfaced.
The market's immediate reaction saw Warner Bros Discovery shares rise by 2.4% to $25 in premarket trading, while Netflix's stock dipped by nearly 3%.
Timeline, Conditions, and Breakup Fees
The acquisition is not expected to be finalised until the third quarter of 2026. Its completion is contingent on one major condition: Warner Bros Discovery must successfully spin off its Discovery Global business unit.
To secure the agreement, significant financial safeguards are in place. Netflix has offered Warner Bros Discovery a hefty $5.8 billion breakup fee should the deal fall through on its end. Conversely, Warner Bros Discovery would be required to pay Netflix $2.8 billion if it walks away from the transaction.
Implications for the Streaming Wars and Stockholders
This acquisition marks one of the largest media mergers in history, granting Netflix control of one of Hollywood's most prized content libraries. The move dramatically intensifies the streaming wars, consolidating vast franchises, film studios, and television networks under one roof.
For stockholders, the deal offers Warner Bros Discovery investors a significant cash payout and a stake in the combined entity's future. However, the initial dip in Netflix's share price reflects investor scrutiny over the enormous debt load and the challenge of integrating two corporate behemoths. The success of this merger will hinge on Netflix's ability to leverage Warner Bros Discovery's iconic assets to drive subscriber growth and profitability in an increasingly competitive market.
