Netflix Conquers the "Albanian Army" Doubters: $82.7 Billion Warner Bros. Acquisition Reshapes Hollywood
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- From “Albanian Army” to Empire: Netflix Stuns Wall Street With Warner Bros. Deal
- Netflix Swallows Warner Bros. and HBO Max in $82.7 Billion Bet on Streaming Supremacy
In a move that will be studied in business schools for decades, Netflix announced Friday it will acquire Warner Bros.' streaming and studio operations from Warner Bros. Discovery in a deal valued at $82.7 billion—including the crown jewels of HBO, HBO Max, and a century's worth of legendary content.
The announcement carries a particularly delicious irony. Almost exactly 15 years ago, then-Time Warner CEO Jeff Bewkes dismissed Netflix's growing influence with a memorable quip to the New York Times: "It's a little bit like, is the Albanian army going to take over the world?"
The Albanian army has answered.
The Deal Structure
The cash-and-stock transaction values WBD shares at $27.75 each, with shareholders receiving $23.25 in cash and $4.50 in Netflix common stock per share. The equity value stands at $72 billion, with total enterprise value including debt reaching approximately $82.7 billion.
Netflix prevailed after a weeks-long bidding war against David Ellison's Paramount Skydance and Comcast. The deal is expected to close within 12-18 months, following WBD's planned spin-off of its Discovery Global TV networks division, now anticipated for Q3 2026.
"I know some of you are surprised we are making this acquisition," Netflix co-CEO Ted Sarandos acknowledged on an analyst call. "We've historically been more builders than buyers."
A Content Empire Unmatched
The combined entity will boast an unprecedented content library spanning a century of storytelling. Warner Bros. brings iconic franchises including "Game of Thrones," "Harry Potter," "The Sopranos," "Friends," the DC Universe, "The Big Bang Theory," "Casablanca," and "The Wizard of Oz."