Overview
- Netflix and Warner Bros. Discovery signed a definitive cash-and-stock agreement valuing the studios and streaming unit at about $72 billion in equity, or roughly $82.7 billion enterprise value, at $27.75 per WBD share.
- Closing is targeted 12 to 18 months after WBD completes the separation of its cable networks into Discovery Global, at which point the Warner assets would transfer to Netflix.
- The merger faces extensive scrutiny by U.S. and overseas regulators, with lawmakers flagging competition concerns and theater owners calling the combination an unprecedented threat to exhibition.
- Netflix says it expects to maintain Warner’s current operations, including theatrical releases for studio films, and the deal includes breakup fees of $5.8 billion for Netflix and $2.8 billion for WBD if it collapses.
- The agreement capped a months-long auction in which Netflix outbid Paramount Skydance and Comcast, and the announcement saw WBD shares rise modestly as Netflix shares edged lower.