Netflix will purchase part of the Warner Bros. Discovery conglomerate for 72 billion dollars. The deal concerns the segment responsible for film and television studios as well as streaming platforms.
According to the agency, Netflix’s offer for Warner Bros., amounting to nearly 28 dollars per share, surpassed the main bid from Paramount Skydance for the entire WBD, which was priced at 24 dollars per share.
As reported by The Wall Street Journal, Netflix valued the enterprise value of the acquired portion of WBD at 82.7 billion dollars, while the total equity value stands at 72 billion. According to Reuters, WBD shareholders will receive 23.25 dollars in cash and 4.5 dollars in Netflix stock.
Both companies confirmed reports about the transaction. According to the WSJ, finalization is expected within 12-18 months. Before that, WBD is set to split into two companies – Warner Bros. and Discovery Global, which, according to the company’s plan, should take place by April 2026.
Netflix will purchase only the first company, which includes streaming platforms (including HBO Max) and film studios. The second entity will control television channels, including CNN and TNT, as well as international channels, such as Polish broadcaster TVN.