Overview
- Netflix and Warner Bros. Discovery announced a definitive agreement for Netflix to buy the studios and streaming assets, with coverage citing valuations ranging from about $72 billion to nearly $83 billion.
- Reports describe an offer structure for WBD shareholders of $23.25 in cash plus $4.50 in Netflix stock per share, while the TV networks including CNN and TNT are slated to become a separate company called Discovery Global by mid‑2026.
- Senior U.S. officials signaled skepticism about the consolidation, and executives from both companies said they anticipate a lengthy antitrust review, with media reports noting a $5 billion breakup fee if regulators block the deal.
- Netflix leaders said Warner Bros. films would continue to open in theaters with potentially faster streaming availability and indicated Warner would operate separately for now, as Greg Peters hinted at potentially lower‑cost HBO access for Netflix subscribers.
- At a Warner town hall, CEO David Zaslav called it a big day for the company, said the board took the best offer after a loud bidding contest against Paramount and Comcast, and noted Gunnar Wiedenfels is set to lead Discovery Global after the spin‑off.