Netflix to acquire Warner Bros. Discovery for almost $83 billion

Netflix has reached an agreement to purchase Warner Bros. Discovery for nearly $83 billion, the two American entertainment companies revealed on Friday. This merger provides Netflix with access to Warner Bros. extensive film library and the premium streaming platform HBO Max, marking the largest media consolidation since Disneys $71 billion acquisition of Fox in 2019.

The deal prices Warner Bros. Discovery at $27.75 per share, translating to an estimated total equity value of $72 billion and an enterprise valueincluding debtof around $82.7 billion.

Shares of Warner Bros. Discovery closed at $24.54 on the Nasdaq the day before the announcement.

Warner Bros. has a long history of creating cinematic landmarks, from classics such as Casablanca and Citizen Kane to modern hit series like The Sopranos, Game of Thrones, and the Harry Potter film franchise.

Ted Sarandos, co-CEO of Netflix, said, By joining forces, we can deliver more content that audiences love and shape the future of storytelling. Netflix has produced global successes including Stranger Things, KPop Demon Hunters, and Squid Game.

David Zaslav, CEO of Warner Bros. Discovery, added, This union brings together two of the worlds premier storytelling companies.

Both companies boards have unanimously approved the transaction, which is expected to finalize within 12 to 18 months.

Author: Maya Henderson