Netflix to Acquire Warner Bros. Discovery in $83 Billion Deal
Netflix is acquiring Warner Bros. Discovery for around $83 billion in a major cash-and-stock deal, combining Netflix's streaming dominance with Warner Bros.' vast library (HBO, DC Comics, Harry Potter, Friends, Casablanca, etc.), aiming to create a powerhouse by adding high-quality content and expanding global reach, though regulatory approval and integration challenges lie ahead.
Key Details of the Acquisition:
Valuation: The deal values Warner Bros. Discovery (WBD) at approximately $82.7 billion in enterprise value, with an equity value of around $72 billion.
Content Powerhouse: Netflix gains iconic franchises like Harry Potter, DC Comics, Game of Thrones, and classic films, alongside its own hits like Stranger Things,.
Structure: WBD's cable networks (like CNN) will be spun off, with Netflix acquiring the film and TV studios, HBO, and the streaming services (HBO Max).
Strategic Goals: To offer more choice, enhance viewing options, expand production, and compete in the evolving entertainment landscape.
Theatrical Releases: Netflix plans to continue Warner Bros.' existing film distribution, including theatrical releases, despite some of Netflix's past skepticism about the model.
Financing: Netflix is securing a significant bridge loan to help fund the cash portion of the acquisition.
The deal requires regulatory approvals and WBD shareholder consent.
It's expected to close within 12 to 18 months, following a planned separation of WBD's Discovery assets.
Concerns about antitrust issues and the combined company's market dominance are anticipated.

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