Mega-Deal! Netflix to purchase Warner Bros. Discovery, Inc. for USD 72B

According to new reports, Netflix has agreed to purchase Warner Bros. Discovery, Inc. for USD 72 billion.

File photo: Netflix and Warner Bros. logos

A massive and possibly game-changing acquisition

With this purchase, the streaming titan gains command of one of Hollywood's most prized and oldest assets, ushering in a new era of streaming power.

Under the cash-and-stock deal, each Warner Bros Discovery share is worth USD 27.75 in the deal: USD 23.25 cash +  USD 4.50 Netflix stock, totalling USD 72 billion (USD 82.7 billion with debt).

Warner Bros. Discovery, Inc. is the home to HBO Max, another popular rival of Netflix with about 130 million subscribers.

Netflix Co-CEO Greg Peters said to their investors that the company could package the streaming services together in a bundle or find ways to introduce HBO Max to Netflix subscribers.

Netflix argued during negotiations that merging its streaming platform with HBO Max would benefit consumers by lowering the cost of a bundled package.

The company also assured Warner Bros Discovery that it would continue releasing films in theatres.

The deal is expected to bolster Netflix's content library with blockbuster franchises, solidifying its position against rivals like Disney and Amazon.

Some of the assets acquired by Netflix

• Warner Bros. film and TV studios
• HBO Max streaming service
• Cable TV networks (CNN, TNT, etc.)

The acquisition is expected to close within 12 to 18 months.

To read the full report. See the source link below.

Source: Reuters