Overview
- Netflix will acquire Warner Bros.’ film and TV studios plus the HBO/HBO Max brands in a cash‑and‑stock agreement valuing WBD at $27.75 per share, or about $72 billion in equity and roughly $82.7 billion enterprise value.
- Closing is targeted in 12 to 18 months after Warner Bros. Discovery spins off CNN, Discovery and other cable networks into Discovery Global, with both companies’ boards unanimously approving the transaction.
- The agreement is subject to a U.S. Department of Justice review and mounting political scrutiny, as theater owners and creative guilds warn of risks to competition, jobs and theatrical exhibition.
- Netflix says it will maintain Warner’s theatrical releases and keep HBO and HBO Max operating for now, while critics question the long-term impact of combining two major content libraries.
- Deal terms disclosed in filings include a $5.8 billion reverse breakup fee for Netflix and a $2.8 billion termination fee for WBD, following an auction that also drew bids from Paramount Skydance and Comcast.