Under the plan, Netflix will take control of the Warner Bros. film studio and the HBO Max streaming platform. Meanwhile, Warner Bros. Discovery will retain television networks such as CNN and TNT, which it also plans to separate through an independent process. In terms of financials, the deal values WBD shares at USD 27.75, corresponding to USD 72 billion in equity and USD 82.7 billion in total enterprise value. WBD shareholders will receive a combination of cash and Netflix stock.

Performance of Netflix’s share price over the last five years

The final completion of the transaction is currently subject to regulatory approval and the consent of WBD shareholders. It is expected that the entire process, including the separation of the television division, will be completed in the third quarter of 2026. Should regulatory approval fail, Netflix would pay WBD up to USD 5.8 billion, reflecting a high degree of transaction risk.

A Content Empire

The potential acquisition would provide Netflix with a library that has shaped generations. Warner Bros. owns hundreds of blockbuster films, legendary franchises such as Harry Potter and the DC Universe, as well as some of the most significant television series of recent decades, including Game of Thrones and The Sopranos. Based on this, the diversification benefits and potential for attracting new subscribers are impossible to overlook.

As suggested at the beginning, Netflix’s business strategy is gradually evolving – simply producing new content is no longer enough; it is necessary to own brands with both cultural and economic power. This new direction is supported by the words of Netflix’s CEO: “This is a rare opportunity that sets us up for systematic success over the next 10 years.”

Investment Implications

With news that is fundamentally this significant, it is essential for investors to assess the potential impact on the stock price – which, in the long run, develops proportionally to the company’s intrinsic value. For Netflix, it will be crucial in the near term to monitor the regulatory approval process. Should the deal be definitively approved, an increase in the company’s underlying value is the most likely scenario. An inseparable part of the analysis is also the valuation on the stock market. Netflix’s share price has naturally declined by approximately 25%* from its all-time high reached at the end of June, which presents an opportunity for investors who wish to benefit from Netflix’s portfolio expansion in its early stages at a significantly more favorable valuation.

Disclaimer! This marketing material is not and must not be understood as investment advice. Data relating to the past does not guarantee future returns. Investing in foreign currencies may affect returns due to fluctuations. All securities trading can lead to both profits and losses. Forward-looking statements represent assumptions and current expectations, which may not be accurate or may change with shifts in the economic environment. These statements do not guarantee future performance. InvestingFox is a registered trademark of CAPITAL MARKETS, o.c.p., a.s., regulated by the National Bank of Slovakia.

*Data relating to the past does not guarantee future returns.

Sources:

https://about.netflix.com/en/news/netflix-to-acquire-warner-bros
https://www.cnbc.com/2025/12/05/neflix-warner-bros-discovery-deal.html
https://www.cnbc.com/2025/06/09/warner-bros-discovery-to-split-into-two-public-companies-by-next-year.html