Overview
- The cash-and-stock deal values the studios-and-streaming assets at $27.75 per WBD share, or about $72 billion in equity and $82.7 billion enterprise value, and excludes cable networks like CNN and Discovery that will form Discovery Global.
- Closing will occur only after WBD completes the planned separation, with the companies guiding to a 12–18 month timeline following the spinoff and requiring shareholder votes and multi-jurisdictional regulatory approvals.
- Netflix says it will maintain Warner’s current operations, including theatrical releases, as critics such as Cinema United and skeptical lawmakers warn about reduced consumer choice and risks to movie theaters.
- The agreement includes sizable termination fees, with Netflix owing $5.8 billion if the deal fails to close and WBD liable for $2.8 billion if it backs out.
- Netflix prevailed over bids from Paramount Skydance and Comcast; early trading showed WBD shares up roughly 2% and Netflix down about 2%, and the combined library would bring franchises like Batman, Harry Potter and Game of Thrones under Netflix’s umbrella.