Netflix is formally shopping for Warner Bros. Discovery for a complete enterprise worth of $82.7B.
The industry-changing deal will see Netflix paying $27.75 a share, with a complete fairness worth of $72B. Netflix will purchase Warner Bros., together with its movie and tv studios, HBO Max and HBO, topic to regulatory circumstances – of which there might be a number of.
The deal will observe after WBD’s world networks division, Discovery World, spins out into a brand new publicly-traded firm, a transfer that’s now anticipated to occur in Q3 2026.
Yesterday, Deadline reported that Netflix had overwhelmed out Paramount and Comcast to purchase WBD, and the announcement a couple of minutes in the past confirmed the deal. The boards of each Netflix and WBD voted “unanimously” to approve the deal.
“Our mission has all the time been to entertain the world,” stated Ted Sarandos, co-CEO of Netflix. “By combining Warner Bros.’ unbelievable library of reveals and flicks—from timeless classics like Casablanca and Citizen Kane to trendy favorites like Harry Potter and Associates—with our culture-defining titles like Stranger Issues, KPop Demon Hunters and Squid Sport, we’ll have the ability to do this even higher. Collectively, we may give audiences extra of what they love and assist outline the subsequent century of storytelling.”
Greg Peters, the opposite co-CEO of Netflix, stated the acquisition would “enhance our providing and speed up our enterprise for many years to come back,” including: “Warner Bros. has helped outline leisure for greater than a century and continues to take action with phenomenal inventive executives and manufacturing capabilities. With our world attain and confirmed enterprise mannequin, we are able to introduce a broader viewers to the worlds they create—giving our members extra choices, attracting extra followers to our best-in-class streaming service, strengthening the complete leisure {industry} and creating extra worth for shareholders.”
“In the present day’s announcement combines two of the best storytelling corporations on this planet to carry to much more individuals the leisure they love to look at probably the most,” stated David Zaslav, President and CEO of Warner Bros. Discovery. “For greater than a century, Warner Bros. has thrilled audiences, captured the world’s consideration, and formed our tradition. By coming along with Netflix, we’ll guarantee individuals in all places will proceed to benefit from the world’s most resonant tales for generations to come back.”
The phrases of the settlement will see every WBD shareholder obtain $23.25 in money and $4.50 in shares of Netflix frequent inventory for WBD frequent inventory share.
Moelis & Firm LLC is appearing as Netflix’s monetary advisor and Skadden, Arps, Slate, Meagher & Flom LLP is serving as authorized counsel. Wells Fargo is appearing as a further monetary advisor and, together with BNP and HSBC, is offering dedicated debt financing associated to the transaction.
Allen & Firm, J.P. Morgan and Evercore are monetary advisors to Warner Bros. Discovery and Wachtell Lipton, Rosen & Katz and Debevoise & Plimpton LLP are serving as authorized counsel.
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