Hollywood Meets Silicon Valley: Netflix’s $82.7B Warner Bros. Discovery Merger

Hollywood is meeting Silicon Valley in Netflix’s announced $82.7 billion merger with Warner Bros. Discovery. This definitive agreement combines traditional entertainment production excellence with cutting-edge streaming technology, creating a hybrid entertainment model that leverages the strengths of both approaches to content creation and distribution.
The merger framework establishes $27.75 per share as the price for Warner Bros. Discovery stock, translating to total equity value of approximately $72.0 billion. The comprehensive enterprise value of $82.7 billion reflects all of Warner Bros. Discovery’s valuable assets, from production facilities to content libraries to distribution networks. The unanimous board approvals from both organizations signal strong institutional confidence in the merger’s potential.
Netflix co-CEO Ted Sarandos emphasized the complementary nature of the two companies’ capabilities. He described how Warner Bros.’ legendary storytelling tradition combined with Netflix’s data-driven approach to content delivery will create unprecedented opportunities for entertaining audiences. The merger provides Netflix with both content depth and production expertise while offering Warner Bros. access to cutting-edge streaming technology.
Warner Bros. Discovery CEO David Zaslav characterized the transaction as bringing together the best of both worlds. He emphasized that while Warner Bros. has thrilled audiences for over a century through its content, Netflix has mastered the technology of connecting that content with global audiences. The partnership leverages these complementary strengths to create an entertainment company positioned to define the industry’s future.