Netflix to Acquire Warner Bros. Discovery in Landmark $72 Billion Deal
Netflix has announced a historic $72 billion deal to acquire Warner Bros. Discovery, combining the world’s biggest streaming service with one of Hollywood’s most iconic studios. Here’s what the landmark merger means for the entertainment industry.
Traders monitor market reactions as Netflix announces its historic $72 billion acquisition of Warner Bros. Discovery.
Netflix Inc. has taken a monumental step that will alter Hollywood's landscape by buying Warner Bros. Discovery Inc.—the world’s largest streaming service and one of the most artistic studios in the city now together.
On Friday, Netflix made the announcement of the deal and also stated that shareholders of Warner Bros. Discovery will be compensated with $27.75 per share in cash and Netflix stocks. The transaction is based on $72 billion total equity valuation with approximately $82.7 billion enterprise value.
With this merger, an enormous amount of content is coming to Netflix in the form of Warner Bros.'s hundred-year-old film legacy, HBO Max's best streaming offerings, and an extensive TV network portfolio. This buying will be counted as one of the biggest entertainment transactions ever in Hollywood and will be characterized as a signal about the next phase of Netflix's wild craving for content.
It is predicted that the merger will significantly enhance Netflix's presence in the areas of franchises, live events, gaming, advanced streaming technology, and global markets for entertainment.
The specifics about reorganization, integration schedule, and changes at the division level will be shared in the next few months.
