Overview
- Netflix and Warner Bros. Discovery announced a definitive agreement for Netflix to acquire the Warner studios and HBO/HBO Max, valuing the business at about $82.7 billion enterprise and $72 billion equity with $23.25 in cash plus $4.50 in Netflix stock per WBD share, while spinning off the TV networks as Discovery Global.
- President Trump said Netflix already has a very large market share, called the merger potentially a problem, and said he will be involved in the decision on the antitrust review.
- The companies anticipate a 12–18 month regulatory process, WBD’s legal chief expressed confidence in approval, and media reports say Netflix agreed to a $5 billion reverse breakup fee if the deal is blocked on antitrust grounds.
- Netflix prevailed over rival bidders including Paramount and Comcast, and initial trading saw WBD shares rise roughly 5% intraday as Netflix fell about 3%.
- Leaders said Warner films would continue to reach cinemas, potentially arriving on streaming more quickly, and WBD’s CEO told staff Netflix intends to keep most employees, even as lawmakers and industry figures, including Senator Elizabeth Warren and director James Cameron, criticized the tie-up.