netflix toโค Acquire Majority of Warner Bros. Discovery โin $72 Billionโค Deal
LOS โคANGELES – Netflix and Warner Bros.Discovery (WBD) โฃhave โreached a definitive agreement for Netflixโค toโค acquire a importent portionโ of WBD, valuing the media giant at $72 billion including debt. The deal, announced today, reshapes the streaming landscape and marks a โdramatic shift for both companies โas they navigate โคan increasingly โฃcompetitive market.
The acquisition will see Netflix โฃgain control of WBD’s film and television โassets, excluding the Discovery Global โคnetwork divisionโ which willโค be spun off as an self-reliant entity. This moveโค consolidates vast content libraries – including โคfranchises like Harry Potter, DCโฃ Comics, โand Game of Thrones – under the Netflix โumbrella, perhaps โbolsteringโข subscriber growth and reducing content costs. Theโ dealโ comes as both โcompanies face pressure to demonstrate profitability in the โฃevolving streaming era, and follows previousโ discussions aboutโ a potential partnership that reportedly stalled overโค concerns about impactingโข consumersโ andโข Hollywood.
Under the terms of the agreement, WBD shareholders will receive $23.25 in cash and approximately $4.50 in Netflix stock for each share held, representing a 121.3% premium over WBD’s โclosingโ stock price onโ September 10th. Netflixโ anticipates โคrealizing at least $2 billion to $3 billion in annualโค cost โsavings by the third year โfollowing theโ deal’s completion, expected โขin the third quarter of 2026.
The agreement includesโ considerable break-up fees: Netflix would pay WBD โข$5.8 billion if the dealโข collapses, while WBD wouldโ pay Netflix $2.8 billion. The transaction is contingent upon theโค successful โคseparation of Discovery global โฃand regulatory approvals.
