Netflix Expresses Full Support for Warner Bros. Discovery's Merger Commitment

Netflix and Warner Bros. Discovery: The Next Era of Entertainment

In a significant development for the entertainment industry, Netflix, Inc. has wholeheartedly welcomed the Warner Bros. Discovery (WBD) Board of Directors' unwavering commitment to their merger agreement. This collaboration represents a pivotal moment as both media giants aim to redefine storytelling for the next century.

On January 7, 2026, Netflix acknowledged WBD's firm recommendation to its stockholders to support the merger despite a competing bid from Paramount Skydance Corporation (PSKY). Following a thorough examination conducted with independent financial and legal advisors, the WBD Board confirmed that the union with Netflix would serve the best interests of its stockholders and the broader entertainment ecosystem.

Ted Sarandos and Greg Peters, Netflix’s co-CEOs, emphasized the strengths both companies bring to the table, fostering a shared commitment to creativity and innovation. They conveyed that this merger would not only bolster Netflix's existing catalog but also elevate the consumer experience by providing more diverse content and opportunities for creators.

Key Details of the Merger

Under the terms set forth in their recently announced agreement, Netflix will acquire Warner Bros., incorporating WBD’s esteemed film and television studios alongside HBO Max and HBO. This transaction is valued at around $82.7 billion, translating to approximately $27.75 per WBD share. Notably, this merger avoids scrutiny from the Committee on Foreign Investment in the United States (CFIUS) due to its structured financing.

The merger also outlines the planned separation of WBD’s Global Linear Networks business, Discovery Global, anticipated to finalize in the third quarter of 2026. Additionally, Netflix is proactive in its dealings with regulatory bodies, having submitted its Hart-Scott-Rodino (HSR) filing and engaging with authorities such as the U.S. Department of Justice and the European Commission.

What This Means for the Industry

This merger is poised to significantly alter the landscape of the entertainment industry. By joining forces, Netflix and Warner Bros. aim to enhance their storytelling capabilities, providing a richer array of content for audiences globally. The collaborative efforts promise an expansion in the types of series and films available, potentially engaging viewers in innovative ways both at home and in theaters.

The commitment from both companies signals a shift towards creating a competitive and vibrant entertainment sector, bolstering opportunities for content creators and improving offerings for consumers. As they progress through the regulatory landscape, Netflix and WBD are determined to ensure a seamless transaction for all stakeholders involved.

Looking Ahead

As the merger agreement unfolds, industry experts and stockholders will be closely monitoring the developments, particularly regarding how both companies integrate their operations to maximize value. Netflix aims to finalize the merger in approximately 12 to 18 months from the initiation of their agreement with WBD. A dedicated platform has been launched, netflixwbtogether.com, providing ongoing updates and insights into the merger.

This merger not only marks a strategic alliance but potentially sets a new standard for future mergers in the entertainment industry, reflecting a trend of consolidation aimed at survival and growth in an increasingly competitive digital landscape. With ETFs and mutual funds also keeping a keen eye on how the merger unfolds, the implications of this deal will likely resonate throughout the financial sector as well.

In summary, the alignment of Netflix and Warner Bros. Discovery is being touted as a groundbreaking step toward reshaping the future of entertainment. By solidifying their partnership, both entities are committed to not just surviving the industry's challenges but thriving in a new era of storytelling.