Overview
- Netflix and WBD signed a definitive agreement valuing the assets at $27.75 per share (about $72 billion in equity and $82.7 billion including debt).
- Each WBD share will receive $23.25 in cash plus roughly $4.50 in Netflix stock, with Netflix set to acquire the film and TV studios and HBO/HBO Max.
- Warner’s cable channels, including CNN, will be separated into a new public company called Discovery Global before closing, which is targeted for 12–18 months after review and projected for the third quarter of 2026.
- Netflix offered sizable deal protections, including a reported $5.8 billion breakup fee if regulators block the transaction, and projects $2–3 billion in annual cost savings by year three.
- The outcome follows a heated auction against Paramount Skydance and Comcast, with Paramount alleging an unfair process; regulators and lawmakers signaled tough scrutiny as Netflix pledged to continue theatrical releases of Warner Bros. films.