Netflix is buying Warner Bros. Discovery for $72 Billion! 🔥
The streaming war is over, and Netflix has won. In a historic move, the giant has closed a deal to buy the owner of HBO, Warner Bros., and Harry Potter.
It was $72 billion! The media market will never be the same!
2️⃣ The Terms of the Deal (Cash + Stock)
The offer is valued at US$27.75 per Warner share (a US$10 billion premium over market value).
The total Enterprise Value (including debt) reaches US$82.7 billion, in a transaction involving cash and stock.
It's the heaviest check Netflix has ever written.
3️⃣ What does Netflix take home? (The Content Vault)
The streaming company, which has always been a "builder" (building from scratch), has now become a "buyer."
It takes home:
• Franchises: Harry Potter, Superman, Batman, Friends.
• Prestige: The entire HBO catalog (Game of Thrones, Succession).
• Studios: The legendary Warner Bros. Pictures.
4️⃣ The Strategy: Split and Focus
Before closing, Warner will split in two.
Netflix will buy the "premium" part: studios and streaming (HBO Max).
The "old" part (cable channels like CNN, TNT, TBS) will be separated into another company.
The goal is to keep the premium content, not the declining cable television.
5️⃣ Paramount was outbid
The company tried to buy the entire Warner Bros. (including the cable channels) for $30/share in cash.
But Netflix's lower offer ($27.75) was accepted because there is great belief in the synergy and stock appreciation of the new combined company.
Paramount's stock plummeted 10% on the news.
6️⃣ The Antitrust Risk (The Trump Factor)
The deal won't be a walk in the park. Rivals and lawmakers are already preparing their attacks.
Paramount says the deal creates a global streaming monopoly.
The Trump administration has signaled "concerns."
The merger of the two largest content libraries in the world will face heavy scrutiny in Washington.
7️⃣ The Future of Cinema
Netflix has promised to continue releasing Warner Bros. films in theaters, breaking its tradition of prioritizing streaming.
But the CEO of Cinema United said this transaction is an "unprecedented threat" to the global exhibition business.
The big screen could become a luxury showcase for streaming.