Netflix has announced plans to create a streaming superpower through its $82.7 billion acquisition of Warner Bros. Discovery. This definitive agreement merges the world’s leading subscription streaming service with one of Hollywood’s founding studios, creating an entertainment giant with the content library, production capabilities, and global reach to dominate the industry.
The deal structure provides Warner Bros. Discovery shareholders with $27.75 per share, translating to total equity value of approximately $72.0 billion. The comprehensive enterprise value of $82.7 billion reflects the full scope of assets included in the transaction, from Warner Bros.’ film studios to its television networks to its streaming services. Both companies’ boards have unanimously approved the merger, setting the stage for regulatory review and eventual completion.
Netflix co-CEO Ted Sarandos emphasized the complementary nature of the two companies’ assets. He noted that Warner Bros.’ legendary catalog of films and television shows, combined with Netflix’s successful original programming and global distribution platform, will create an entertainment experience unmatched in quality and variety. This acquisition represents a significant milestone in Netflix’s evolution from content aggregator to content owner.
David Zaslav of Warner Bros. Discovery expressed confidence that the merger will amplify Warner Bros.’ impact and reach. He highlighted that Netflix’s sophisticated technology and data analytics will help Warner Bros. content connect with audiences more effectively while maintaining the creative standards that have defined the studio. The transaction positions both companies to capitalize on the ongoing global shift toward streaming as the primary mode of entertainment consumption.
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