Netflix to buy Warner Bros in USD72b cash, stock deal
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The news: Netflix has agreed to buy Warner Bros Discovery in a deal that will see the streaming giant create a global entertainment powerhouse.
The numbers: In a statement released Friday, the companies said under the deal, Warner Bros. shareholders will receive USD27.75 ($41.82) per share in cash and stock in Netflix.
The total equity value of the deal is USD72 billion, while the enterprise value of the deal is about USD82.7 billion.
The context: The companies said that Warner Bros will complete its planned spinoff of its cable television networks including CNN, Discovery and Turner into separate publicly-traded company before Netflix completes the acquisitions. The spinoff is expected to be completed in Q3 2026.
With the purchase, Netflix will become the owner of Warner Bros’ film and television studios, HBO Max and HBO, along with its deep portfolio of shows and franchises including The Big Bang Theory, The Sopranos, Game of Thrones, The Wizard of Oz, Harry Potter, Friends and the DC Universe.
Netflix beat out rivals Comcast and Paramount Skydance which had been pursuing the acquisition since Warner Bros put itself up for sale in October, after receiving interest from several parties.
The transaction was unanimously approved by the Boards of Directors of both Netflix and Warner Bros, the companies said, but remains subject to regulatory approvals.
Moelis & Company LLC is acting as Netflix’s financial adviser and Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel. Wells Fargo, BNP and HSBC also advised Netflix.
Allen & Company, JPMorgan and Evercore are serving as financial advisors to Warner Bros. Discovery, with Wachtell Lipton, Rosen & Katz and Debevoise & Plimpton LLP serving as legal counsel.
What they said: David Zaslav, president and CEO of Warner Bros. Discovery said: “For more than a century, Warner Bros. has thrilled audiences, captured the world’s attention, and shaped our culture. By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come.”
The source: Netflix Warner Bros Discovery press release
