Overview
- Netflix and WBD announced a definitive agreement valuing WBD at $27.75 per share, comprising $23.25 in cash and $4.50 in Netflix stock subject to a VWAP collar.
- The transaction covers Warner Bros. film and TV studios as well as HBO and HBO Max, combining Warner’s library and brands with Netflix’s global platform.
- Closing is expected in 12 to 18 months following the previously announced separation of Discovery Global, which houses CNN and other cable networks.
- Both boards approved the deal unanimously, and U.S. and international regulators are expected to scrutinize the combination, with lawmakers already voicing antitrust concerns.
- The sale followed a competitive auction against Paramount Skydance and Comcast, and Paramount sent a letter alleging WBD ran a process that favored Netflix.