Overview
- Both boards approved an agreement valuing the studios-and-streaming equity at about $72 billion, or $27.75 per WBD share, implying an enterprise value near $82.7 billion.
- Consideration disclosed in filings and reports includes roughly $23.25 in cash plus $4.50 in Netflix stock per WBD share, with a $5.8 billion reverse breakup fee for Netflix and a $2.8 billion fee for WBD.
- The purchase covers Warner Bros.’ film and TV studios, HBO and HBO Max, consolidating major franchises such as DC, Harry Potter and Game of Thrones under Netflix.
- The transaction is conditioned on WBD spinning off its linear networks into Discovery Global, with the companies projecting a closing 12 to 18 months after that separation.
- Netflix says it expects to maintain Warner’s current operations, including continuing theatrical releases, as lawmakers and theater owners signal intensive antitrust scrutiny.