U.S. streaming giant Netflix, Inc. has announced its agreement to acquire Warner Bros. Discovery, Inc.'s film and television studios, along with its HBO Max and HBO streaming services.

According to a press release issued by Netflix on Friday (December 5), Warner Bros. Discovery shareholders will receive $23.25 in cash and $4.50 in Netflix common stock per share. The equity value of the deal stands at $72 billion (approximately RMB 509.06 billion), with an enterprise value of around $82.7 billion (RMB 584.71 billion).

Wells Fargo, BNP Paribas, and HSBC will provide $59 billion in debt financing for the transaction. Following the announcement, Netflix's stock price declined, while Warner Bros. Discovery's shares rose.

The merger is expected to close within 12 to 18 months. Before completion, Warner Bros. Discovery must spin off its news division as a separate publicly traded company, "Discovery Global."

Netflix also noted that the deal remains subject to regulatory approvals. Analysts suggest that if finalized, the acquisition would unite the world's largest subscription streaming service with one of Hollywood's oldest and most prestigious film studios.

Warner Bros., a century-old entertainment powerhouse, owns iconic franchises such as "Batman," "Superman," "The Matrix," "Harry Potter," "The Lord of the Rings," "Game of Thrones," and "The Sopranos." Netflix, founded in 1997, initially operated as a DVD rental-by-mail service before pivoting to streaming in 2007. In recent years, it has produced global hits like "Stranger Things" and "Squid Game," amassing over 300 million subscribers worldwide.

The deal marks a powerhouse alliance between a streaming leader and a legendary film studio. Netflix Co-CEO Ted Sarandos stated, "By integrating Warner Bros.' vast library—from timeless classics like 'Casablanca' and 'Citizen Kane' to modern hits like 'Harry Potter' and 'Friends,' alongside our own trendsetting originals such as 'Stranger Things,' 'K-Pop: Demon Hunters,' and 'Squid Game'—we can deliver even more beloved content to audiences and shape storytelling for the next century."

Warner Bros. Discovery announced its openness to a sale in October, attracting interest from multiple parties, including Paramount-Skydance and Comcast, leading to a competitive bidding process.

Netflix anticipates annual cost synergies of "at least $2 to $3 billion" starting in the third year post-merger. The company plans to maintain Warner Bros. Discovery's existing operations, including theatrical releases—a key concern for Hollywood.